Urban retail: the rising star of post-pandemic rea…



CHICAGO – The continued rise in physical office occupancy, ongoing strong consumer demand and spending and the return of foreign tourists across major U.S. cities is fueling a renaissance in urban retail, according to JLL.

Luxury brands and savvy investors are looking to secure prime locations in revitalized city centers, underscoring the investment potential of urban retail properties as they emerge as strong performers in the post-pandemic real estate landscape.

Urban retail’s share of multi-tenant, single-asset transaction volume recovered to a five-year high for YTD Q3 in 2024, comprising 14% of the total and a 180% increase YOY. This increase is attributed to significant prime urban deals, notably the sale of 717 Fifth and 680 Madison Avenue. JLL’s recent Luxury Retail Report highlights a trend of luxury conglomerates increasingly acquiring prime urban properties. These companies are strategically seeking locations in the most coveted corridors, whereby they can limit market entry for new competitors and solidify their brand presence.

Urban retail markets are showing signs of recovery and growth as city centers bounce back from the pandemic. According to the 10-city Back to Work Barometer, weekly average office occupancy has notched 61%, indicating a gradual return to the urban core. This trend is particularly evident in Los Angeles, which recently experienced its highest single day of occupancy since the pandemic began, with 69% on a Wednesday.

“The ‘High Streets’ are still riding high,” said Matthew Fainchtein, Managing Director with JLL Retail Advisory. “The BH Triangle especially Rodeo, Beverly and Brighton Way are still some of the most coveted streets in LA. On Melrose and Robertson in West Hollywood there is virtually no vacancy as the newer cooler brands see it as the area in the city to launch their brands. Abbot Kinney is still a sought-after street with very little inventory available. Property in these areas will continue…




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