National Vacancies

Forecasts show that net absorption is expected to rise in the first quarter of 2018 only in the West region (33.5 percent) and is expected to decrease in the rest of the regions.

U.S. retail market conditions from Q1 2015 to Q1 2018*

*Monthly chart cycles among office, industrial and retail. Source: CoStar Group Inc.
*Monthly chart cycles among office, industrial and retail. Source: CoStar Group Inc.

During the first quarter of 2017, retail net absorption decreased compared to the same quarter of 2016 only in the West, with a loss of 13.8 percent. In all the other regions, net absorptions increased, the most significant change being in the Northeast, by 15.2 percent. Vacancy rates year-over-year decreased in all regions, with the largest change In the South, which dropped to 5 percent in the first quarter of 2017 from 5.5 percent in the first quarter of 2016. Forecasts show that net absorption is expected to rise in the first quarter of 2018 only in the West region (33.5 percent) and is expected to decrease in the rest of the regions. The most significant decrease is expected to be in the Northeast, at approximately 25.1 percent, followed closely by a decrease of 24 percent in the Midwest region. Vacancy rates for retail are expected to decrease by 0.7 percent in the West and increase slightly in other regions. The largest increase is expected to be in the South, at approximately 4.2 percent.