Q3 2024 Retail Market Report
RETAIL MARKET OVERVIEW
The third quarter of 2024 was active for the retail market, driven by a slight dip in interest rates, spurring buyer interest. Vacancy rates saw a minor decrease from 3.4% to 3.3%, and the annual average NNN asking rate softened slightly to $29.34 per square foot. Amid pre-election uncertainty, investors emerged from the sidelines as rates reached their lowest since Q3 2023, reflecting renewed confidence in retail
opportunities.
| MARKET INDICATORS | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| ↑ 12 Mo. Net Absorption (SF) | (429,189) | (688,394) | (668,493) | (548,911) | (429,920) |
| ↓ Vacancy Rate (%) | 3.3% | 3.4% | 3.3% | 3.1% | 3.1% |
| ↓ Avg NNN Asking Rent PSF | $29.34 | $29.81 | $29.82 | $29.85 | $29.53 |
| ↑ Sale Price PSF | $337.00 | $328.92 | $442.38 | $331.37 | $327.80 |
| ↓ Cap Rate | 5.94% | 6.00% | 6.90% | 6.00% | 5.80% |
| ↓ Under Construction (SF) | - | 436,619 | 445,293 | 465,144 | 179,201 |
| ↓ Inventory (SF) | 182,396,180 | 182,765,131 | 182,322,078 | 182,353,653 | 182,345,136 |