- Strongest year for activity since the recession began
- Construction in CBDs will impact future retail
- Brick-and-mortar retailers evaluating strategies, consider “right-sizing”
The retail market continued to improve in the second half of 2012. Vacancy decreased from 8.9% at mid-year to 8.3% due to the 802,000 square feet (sf) of positive absorption in the second half. Community centers accounted for most of the absorption with more than 578,000 sf of positive absorption. Rental rates slightly increased to $26.96 from $26.78.
2012 was the strongest year yet for retail activity since the onset of the recession. In the second half of the year alone, several big-box and junior-box retailers expanded in the market:
- Walmart opened locations in Brooklyn Center, Burnsville and Lakeville
- Becker Furniture World opened in Maple Grove and Woodbury
- Target opened a 150,000-sf store in Inver Grove Heights
- Trader Joe’s opened in Bloomington
- Forever 21 opened an 80,000-sf flagship store at the Mall of America
- H&M took 20,000 sf at Calhoun Square
- Big Lots! opened in Bloomington
- Cost Plus World Market returned to the area with stores in Bloomington and Roseville
In addition, a variety of national, regional and local tenants continued to add new stores, including Aldi, Charming Charlie, Cherry Berry, Dollar Tree, Five Guys, Yogurt Lab and Starbucks.
To read more, visit the January 2013 edition of Cushman & Wakefield/NorthMarq’s Compass report, now available online. Visit the web site: www.northmarqcompass.com