JLL recently issued a forecast report for retail in 2013. Summary:
This white paper provides a detailed analysis of economic, leasing and capital markets trends for the United States, with specific emphasis on anticipated future conditions and insights from subject matter experts within Jones Lang LaSalle’s Retail group.
Here are some of our predictions and assumptions:
- Pent-up demand should help consumer spending push slightly higher in 2013
- Weak income growth will continue to hurt purchasing power
- Increased housing starts will provide a 2013 boost
- Labor market improvement will be the biggest wild card
- More aggressive retailer expansion will be cancelled out by downsizing footprints
- We are expecting to see increases in new space deliveries, which will dampen net absorption as weaker stores are closed
- Strong, grocery-anchored centers will continue to be star in 2013
- The composition of investment market offerings will continue to morph
