Digging deeper into the changing dynamics in U.S. real estate, this slide looks at retail and industrial property trends.
On the left-hand side, we show year-over-year rent growth in the U.S. retail landscape. As you can see, retail rent growth declined sharply after the start of the pandemic but has since recovered and increased through 2Q22.
The chart on the right shows the change in the number of retail establishments over the last ten years. While total retail establishments are growing, service establishments are driving growth. In particular, discount stores, personal care shops (nail salons, etc.), restaurants and bars are leading. Stores that sell clothing, electronic, appliances, furniture, and books are declining, as shoppers buy more online instead and focus on experiences in-person.