The local retail market remained strong through the 1st half of 2023 with average vacancy rates continuing a downward trend, finishing at 3.4% at the end of June, down from 3.9% at the end of 2022. Lincoln’s average asking rental rates moved up during the first half of the year, starting at $13.87 PSF at the end of 2022 and finishing at $14.48 PSF on a triple net basis by the end of June.
Not all local retail news is positive as we learned recently that Tip Top Tux closed all of its stores suddenly, including the two Lincoln locations. This comes on the heels of another formalwear store, David’s Bridal, announcing bankruptcy earlier this year, its 2nd bankruptcy in five years. Also, CVS Pharmacy announced the closing of its store at 48th & O Street. Despite these announcements, the overall local retail environment is healthy and should remain strong during the 2nd half of the year.
Nationally, retail vacancy rates are near 4.0% according to the National Association of Realtors, well below office vacancy rates near 13.0% and in the same ballpark as industrial vacancy rates. Despite the continued concerns about a possible recession, the unemployment rate remains low and consumers seem willing to spend their dollars at retail outlets. Discount chains like Five Below are rapidly expanding and, in some cases, moving into vacancies left by other national retailers.
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