Unexpected Benefit of Store Closings: More Available Retail Space
Available retail space in U.S. has been incredibly tight in the past few years as post-pandemic spending drove record property demand, coupled with high construction costs. However, according to CoStar, retail space availability recently reached 4.8%, the most space available for lease in two years. This shift can be attributed to a surge in store closings and bankruptcies, which has provided new opportunities for financially stronger retailers looking to expand or enter new markets. Leading the way in increased retail availability is Austin, Texas, which has consistently been one of the tightest retail markets in the country.
First Waldorf Astoria to Open in Texas
In a first for Texas, the Waldorf Astoria Texas Hill Country will open in 2027 in Fredericksburg with 60 rooms and suites, 87 residences, five restaurants, a spa, fitness center, and two pools. The hotel will be located within a mile of Fredericksburg's historic downtown, which welcomes around 1.5 million tourists a year.
Despite RTO Mandates, New Office Space Availability Surging
With just 67 million square feet of office space currently under construction, preleasing has increased to more than 67%, and only 23 million square feet of under-construction office space remains available. Yet new, first-generation buildings contain nearly 48 million square feet of available space, the highest availability rate for new buildings since 2010. According to CoStar, this is due to a lack of desired amenities, potential size mismatches, and inflated costs. The performance of new office buildings will be a key economic indicator in the future.
