Many suburban retailers have been doing more business than urban locations for the past few years. Due to the Pandemic and an increase in people working from home, they are shopping closer to their homes and continue to do so. Now, there has been a shift in the workforce with people going into the office a few times a week vs. full time and it seems to be benefitting both, urban and suburban properties.
According to commercial real estate services firm Marcus & Millichap, “for the first time in 15 years, the vacancy rate for suburban retail dipped below the same metric for urban retail. At the same time, rental rates at suburban properties are increasing at a faster pace than those at urban street retail.”
This is not going to change any time soon. The hybrid work from home scenario is here to stay. On the flip side, the retailers that struggled during the pandemic in urban environments are, however, making a comeback. Rents are likely less than they were, and people are still going to the office part time or even full time so they will see shoppers coming back!
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