As with each year the fourth quarter is retailer's biggest time of the year. In 2013, the average shopper spent $407.02 over the Thanksgiving weekend which was 3.9% less than in 2012 per the National Retail Federation (NRF). Due to the decrease, retailers continued their discounted prices throughout the holiday shopping season. The positive news is 139 million more people shopped this year over 2012.
In December the Conference Board's Consumer Confidence Index bounced back from November's decline of 72.0 to 78.1. Unfortunately, this is still way below a stable economy reading which is 90. 78.1 though is still some positive news as the Consumer Confidence is now approaching pre-government shut down levels. Consumers are said to be optimistic and in better spirits with confidence looking ahead to future economic and job prospects.
The greater Chicagoland retail market ended the fourth quarter had a slight increase to 9.0% from 8.9% in the 3rd quarter. As follows with the increase with the vacancy level, the net asking rents on average dropped to $16.73. From 4th quarter 2012 to the end of 2013 the vacancy level has increased by 30 basis points while net asking rents have only dipped slightly.
The biggest news in the Chicago market is Safeway's Dominick's closes all their 72 stores and pulled out of Chicago. This has hit many retail centers losing their biggest anchor tenant. As a trickle down affect this also has an impact on the smaller stores located in the center who paid premium rents to be at the Dominick's anchored center. On the positive, Mariano's Fresh Market announced they would take over 11 of the local stores. This shall increase Mariano's to 29 strong and employing 10,000 people throughout Chicago.
Far N.W. Suburbs
Far North Suburbs
Far West Suburbs
Far S.W. Suburbs
Gross Bldg SF
Average Asking Net PSF
Consumers are optimistic about the future economy.
statistical information provided by CBRE Chicago Retail MarketView Q4 2013