• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Small spaces dominate US retail leases in Q1 2024: JLL report

17 May '24
2 min read
Small spaces dominate US retail leases in Q1 2024: JLL report
Pic: JLL

Insights

  • The US retail market dynamics have been shaped by demand outpacing supply in Q1 2024, a JLL report said.
  • Leasing activity in Q1 fell due to a lack of suitable location availability.
  • A notable trend was the preference for small spaces of less than 2,500 sq ft, accounting for over two-thirds of executed leases.
  • Retailers also sought high-quality mall spaces.
The US retail market dynamics have been shaped by demand outpacing supply in the first quarter (Q1) this year, according to global real estate services company Jones Lang LaSalle (JLL).

Net deliveries remained modest at 9.5 million in the quarter for the 139 national index markets in the United States and most of the retail space under construction is pre-leased, leaving a mere 25 per cent available for lease.

Leasing activity in the period decreased due to a lack of suitable location availability. However, the leasing rate of 35.1 per cent over the last 12 months was higher than the previous year's rate, indicating robust demand, a JLL report said.

A notable trend was the preference for small spaces of less than 2,500 square feet, accounting for over two-thirds of executed leases. The size of newly executed leases fell 11.1 per cent from the previous quarter to an average of 3,027 square feet. More than two-thirds (68.5 per cent) of deals inked in the first quarter were for such small spaces.  

There has also been a growing trend for retailers seeking high-quality mall spaces, seeing healthy demand for class A malls. However, limited construction starts and moderate deliveries are expected to continue causing supply constraints in the near future.

Fibre2Fashion News Desk (DS)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search