Washington D.C. Lands as Top Retail Market
Washington D.C. topped ChainLinks Retail Advisors’ list as the
top retail market in 2010. The retail-focused commercial real estate organization
said retail demand has “skyrocketed” in the district over the last
two years, current shopping center vacancy levels are low, and unemployment
is lower than in any other major market in the country.
Coming in second was
San Francisco. ChainLinks Retail Advisors stated in its U.S.
National Report Spring 2011 report. “Though the San Francisco market
currently has unemployment levels above the national average, the city’s already
light vacancy levels, high retailer demand and expected strong job growth in
2011 helped to propel it to number two on our list.”
Meanwhile, the next
three on the list — New York City, Boston and San Diego — all are “markets
that are forecast for strong employment growth in 2011 and that have lower
levels of shopping center vacancy and continued strong retailer interest.”
out the list were San Jose, Baltimore, Philadelphia, Seattle and Pittsburgh.
making its analysis, ChainLinks Retail Advisors said it looked at existing
shopper center vacancy, ongoing construction, rental rate trends and the amount
of retailer demand in the area. It also looked at overall economic indicators
such as unemployment, housing starts, forecast in-migration and income growth.
organization stated, “These rankings are not based on which market
will boast the lowest vacancy, the highest levels of occupancy growth, or the
strongest rental rate growth. Instead we are ranking what we see as the general
health of the marketplace.”
- ChainLinks National Retail Report; DC Tops Power Rankings as Strongest Market – ChainLinks
- ChainLinks U.S. National Report Spring 2011 – Terranomics
Discussion Questions: What are some of the better-known as well as lesser-known factors that contribute to a healthy retail marketplace? Which ones are most undervalued when stores look into opening or expanding into new regions? How does such analysis differ for national chains versus independents?