Retail, Office, and Hotel Fundamentals Update
3RD QUARTER CRE UPDATE; PERFORMANCE TRENDS TO WATCH IN THE RETAIL, OFFICE, AND HOSPITALITY SECTORS
Office Performance Heavily Segmented
Since 2019, overall office vacancy rose 470 basis points; however, much of the increase is in a few subgroups
Small, suburban offices retained tenants effectively, while modern office buildings have also avoided vacancy surges
Retail Success Gaining Investor Attention
Despite fears that e-commerce would severely impact retail assets, suburban centers have become an industry darling
Retail vacancy is still in line with historic lows as 2023 holiday spending remains strong
Hospitality KPI’s Rising To New Highs
While select service properties recovered quickest from the pandemic, higher-end hotels are now recovering occupancy at a heightened pace
ADR and RevPAR at record levels across hotel type has led to increased attention to hospitality assets as some other property types see fundamentals soften
Sources: Marcus & Millichap Research Services
