Today we will put out our crystal ball and predict the future of retail space for rent. Not an easy task at all, but one we feel qualified to tackle. We are RDS Real Estate, serving the Greater Fort Worth Metro area, as well as Tarrant, Parker, and Johnson Counties, with affordable industrial space and commercial property for rent. Call us at 817-439-3224 for more information.
A quick definition of retail space for rent.
Retail space is property where goods and/or services are sold directly to the consumer.
What are some typical features in retail space for rent? Retail lease space is for businesses who rely on a lot of foot traffic. They are typically near another, perhaps larger business that is referred to as an “anchor business,” like a grocery store or department store. They’re placed this way to draw customers from the “anchor business” over to the smaller business. Businesses such as grocery stores draw lots of foot traffic. Once someone is done with their grocery shopping, the smaller store may catch their eye, leading them to go explore it. Retail spaces are often in groups, like strip malls or retail parks. They also may have marquees to add another eye-catching detail. Retail spaces will typically have large glass windows, perhaps with products and/or mannequins in them to draw people into the store.
Availability going forward in 2025 and beyond.
In 2023, the vacancy rate of retail space in the U.S. was 4.6%, the lowest it has been since records were kept in 2007. The demand for good retail space for lease is there, but will the supply keep up with the demand?
New construction starts on retail properties has slowed and will continue to slow through the elections in November 2024. Beyond that, we will have to see the results of that election and how the markets respond to the results. Will the prime rate drop in 2025? If so, you can expect an immediate jump in new construction. As we said, the demand is there; it is simply a matter of when investors feel the “now” is upon us.
The nature of the retail space.
What will the new wave of retail space look like?
As Malls fill up, expect to see more “stand alone” retail construction.
Expect to see retail businesses moving into small neighborhoods, following the trend towards micro shopping districts.
And expect the trend of smaller businesses to continue to rise. Small is in these days, and small will continue to be popular. We are not saying Walmart will die away, but we are seeing an increase in more “mom and pop” enterprises, stores which are small enough as to be affordable and not crippling in their overhead.
We expect to see more civic pride which will spur an increase in local companies. Small retail property is less expensive to construct and maintain, and the influx of small businesses, owned by single entrepreneurs, continues to rise.
A final word about RDS Real Estate.
RDS Real Estate is locally owned and operated, a trusted name in the Greater Fort Worth Metro area. Call us no matter what you need i.e. warehouse for rent, office space for lease, retail space for rent, and our leasing agent will find it for you at a price you can afford. Ask us about the Fort Worth Design District and 917 Industrial Park.