• Employment grew at a solid pace in Q2 2016—a marked contrast to the lackluster GDP growth during the first half of 2016.
• Total retail and food service sales increased by 2.6% year-over-year in Q2 2016.
• As expected, net absorption accelerated in the second quarter, bringing the year-to-date total to 28 million sq. ft. —on par with the total absorbed during the same period in 2015.
• Retail completions increased in Q2, albeit at a modest rate.
• As consumer spending continues to strengthen, demand for retail space is outpacing the limited additions of new supply, causing steady tightening in the retail real estate market.
• Growth in retail rents is accelerating, another indication that rising demand is putting pressure on the supply-constrained market.
• U.S. retail investment activity in Q2 2016 was comparable to the prior quarter, but less robust than in 2015.