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.
ALCHEMPro News Desk (DS)
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