A recent report by real estate company, Cushman and Wakefield, reveals that the US is currently the largest online retail market in the world and account for almost a third of global online sales with approximately $187 billion-worth of retail goods sold online in 2012 (according to data provider Euromonitor).
The most sold products online are books, clothing, travel related items, electronics, beauty supplies and perfumes.
According to the study, online retailing globally has been growing at an average of 18% per year over the last three years – significantly higher than the 1.3% growth per year seen through other retail channels.
But growth is not exclusive to online sales. A report by real estate research firm REIS Inc reveals that vacancy rate for retail properties in the US has reached its lowest level in more than three years, reaching 10.5%, compared to 10.6% from last year, meaning physical retailers are also living a good moment.
We can’t talk about a total recovery yet, as nationwide vacancy rate in 2008 was 7.7%, but a recovery is slowly happening, especially in bigger cities. San Francisco's vacancy
rate was just 3.9% in the second quarter, compared with over 16% in Tulsa, and Dayton, according to REIS .
While retail space is booming, office space vacancy rate is unchanged and according to REIS, it remained at 17.2% for Q2 of 2013.
What can be expected for the future?
About 31.5 million square feet of new retail space is expected to be delivered this year, that’s low compared with about 200 million in 2007 and 2008, but it’s higher than in previous years when new developments were nearly frozen. And for 2014, almost 70 million square feet of new retail space is expected to be delivered, that’s more than twice of this year. New developments are a clear sign of what the market should expect.
No doubt this increase in retail sales will have a positive effect for the entire economy. Have you been buying more lately? Has your company felt an increase or decrease in sales? Let us know, share your thoughts with us.
Labels: office space vacancy, online retail sales, san francisco vacancy