Report: Consumer Spending Drives Investor Revival for Retail

According to a recent report from JLL, robust consumer spending, as well as record-low total retail vacancy, led to a combined 3.3% growth in asking rents in prime retail corridors from 2022 to 2023.

JLL’s 2024 City Retail Report suggests urban retail is poised for an investor resurgence, underpinned by robust consumer spending. Consumer spending continues to grow, surpassing $705 billion in September of 2023, and retail vacancy reached a historic low of 4.2% at 2023 year-end. Investment activity is expected to accelerate over the next 12 to 18 months amid growing optimism for interest rate cuts.

One example of this resurgence is JLL’s recent closing of 701 N. Michigan Avenue, a 22,900-square-foot retail asset situated along Chicago’s Magnificent Mile. The property is leased to a high-performing Rolex, which occupies 2,240 square feet of ground-floor retail and 2,040 square feet of basement storage on a long-term basis. JLL’s Keely Polczynski, Michael Nieder, John Dettlaff and Caity Tirkian represented the seller, Grosvenor, and procured the buyers, Mason Asset Management and Namdar Realty Group.

“This was a heavily sought-after offering, given the opportunistic nature of the deal at a key corner along an internationally renowned high street.”

JLL Managing Director Keely Polczynski

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