US Retail and Food Services Sales Growth Update
Outlook Sector
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By the end of December 2021, major retailers had announced 5,083 store openings as opposed to 5,079 store closures according to Coresight
Research¹
Brick-and-mortar sales growth was strong at nearly 20% in 2021, exceeding ecommerce
growth²
Occupancy Rates by
Sub-Property Type
26
Leasing momentum is strong, with anchor tenants and national retailers leading demand²
Anchor occupancy, particularly grocer occupancy, has held up well and demand from
national retailers is leading the steady recovery²
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As consumer spending gradually shifts back towards services rather than durable goods,
supply chain pressures will ease, and rapidly increasing prices caused by surges in
demand for these goods should abate³
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96%
94%
Increased investment in digital technologies: AI for inventory management, robotics for
fulfillment and micro fulfillment
92%
Micro-fulfillment centers (which can mostly automate the picking process in ~10k SF)
placed within existing stores seem likely to gain significant traction over the next decade²
Grocery-anchored retail saw a 71% year-over-year increase in transaction volume at
$16.2 billion in 2021 and comprising approximately 21.1% of all retail deals³
90%
88%
Neighborhood Center
Community Center
Power Center
3Q15
1Q16
3Q16
1Q17
3Q17
1Q18
3Q18
1019
3Q19
1Q20
3Q20
1Q21
3Q21
22E
'24E
26E
The NYC metro experienced the highest volume of self-storage asset sales in 2021, with $3.78B in sales compared to $945M in 2020 and $565M in
2019. Self-storage valuations increased by 66% in 2021 - a sharper increase than in any other real estate sector4
Self-Storage revenue growth is expected to decelerate but remains strong headed into '22, particularly in 1H22 due to strong sequential move-in rate
growth in recent quarters5
Self-Storage Occupancy remains at all-time highs driven by subdued vacates and sticky incremental demand from COVID5
Sources:
1. Cushman & Wakefield U.S. Shopping Centers MarketBeat Report (4Q 2021)
UNITED-HAMPSHIRE
2.
3.
Green Street Strip Center Sector Outlook, January 28, 2022.
Cushman & Wakefield Research.
4.
Green Street Real Estate Alert (December 14, 2021).
5.
Green Street Self Storage Sector Outlook, January 20, 2022.View entire presentation