In April 2013, according to the Commerce Department, retail sales edged up 0.1 percent after in March dropping 0.5 percent. Reuters stated that April's retail sales rose and caused forecasters to increase their second quarter growth estimates.
The Conference Board's Consumer Confidence Index improved in May and June starting at 74.3 in May and ending the 2nd quarter at 81.4. Still some way to go till reaching 90, which indicates a stable economy, this illustrates that people are visiting retail stores and purchasing! Consumer Confidence level is currently at its highest since January 2008 (87.3).
While the Consumer Confidence Index has increased, so has the Chicago retail vacancy level. From 1st quarter 2013 to Second quarter 2013 there has been a 0.2% increase in retail vacancy standing at 8.8%. Though it does show some good news as it is 20 basis points lower than one year ago.
Rental rates are continuing to rise to the highest levels since 2008 at $17.18 psf on average throughout Chicago and the suburbs.
As a commercial real estate broker heavily involved with retail in the western and southern market, I have experienced an increase in traffic and deals coming together. Many smaller retailers are expanding their operations and entrepreneurial are trying their hand at being business owners. If this trend continues with the Consumer Confidence Index I believe 2013 will end on a positive note for retailers.
South West Suburbs
Gross Building S.F.
Average Net Rate PSF
Consumer Confidence Index continues to climb