Current Trends and Market Dynamics
Surge in Retail Leasing Market
The current market is witnessing a substantial surge in retail leasing activity, more than 52 million ft^2 during the second quarter of 2024, representing a growth of more than 10% compared to the averages during the recent pandemic and a high point across the past 2 decades. The demand and volume of retail spaces has exploded and this is mirrored in the stagnated vacancy rate looming at around 4.1% expressing a strong retail market and a need for more storage and floor space. These spaces are being leased quickly with 50% of units leasing after 3 months, 80% after 6 months and 98% after 9 months.
These statistics are strong indicators of the post pandemic market recovery in the face of the passing of Large scale Retail Tenants such as Rite Aid, Bed Bath & Beyond, Walgreens and Sears new opportunities have emerged for retail tenants and retail landlords for more innovative names to fill. This is also visible in the Local DMV economy as the area has seen an increase in storage space from 1.6% to 2% of inventory devoted to storage. Government say may dictate whether this trend sustains, accelerates or recedes as global trade dictates consumers' bottom lines.
Local to Baltimore there has been a strong decline in brick and mortar Drug stores. These local locations have to compete with eCommerce models such as the titan Amazon. A new model needs to develop if small scale drug stores want to compete, especially on the localized level. A direct to consumer solution with a focus on relationship development and establishment will be a must.
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