For the first time in more than 15 years, retail availability in US central business districts (CBDs) surpassed the suburbs. According to data from CBRE, retail availability in CBDs in 2022 was higher than in suburbs. The last time this occurred was 2006.
The data signals a shift in consumer shopping trends favoring more localized shopping. This trend can be traced back to the COVID-19 pandemic. As lockdowns forced people to stay at home and work remotely, many people rediscovered the appeal of suburban living and moved away from cities. As a result, they re-directed shopping dollars to retail districts closer to where they lived.
Today, suburban retail spending is still high as many companies are continuing remote work policies. This has caused an increase in CBD retail availability and a drop in suburban retail availability.
CBRE expects this trend to continue as workers today prefer hybrid work arrangements and flexible lifestyles. Further, more people now want to live away from big cities. US Census data shows that tertiary markets saw higher population growth rates from 2019 to 2022 than primary and secondary markets. In that period, tertiary markets contributed 47 percent of US population growth and 62 percent of net migration.
For the first time in more than 15 years, retail availability in US central business districts (CBDs) surpassed the suburbs. According to data from CBRE, retail availability in CBDs in 2022 was higher than in suburbs. The last time this occurred was 2006.
The data signals a shift in consumer shopping trends favoring more localized shopping. This trend can be traced back to the COVID-19 pandemic. As lockdowns forced people to stay at home and work remotely, many people rediscovered the appeal of suburban living and moved away from cities. As a result, they re-directed shopping dollars to retail districts closer to where they lived.
Today, suburban retail spending is still high as many companies are continuing remote work policies. This has caused an increase in CBD retail availability and a drop in suburban retail availability.
CBRE expects this trend to continue as workers today prefer hybrid work arrangements and flexible lifestyles. Further, more people now want to live away from big cities. US Census data shows that tertiary markets saw higher population growth rates from 2019 to 2022 than primary and secondary markets. In that period, tertiary markets contributed 47 percent of US population growth and 62 percent of net migration.
