Western

By Glenn R. Rudy, Senior Managing Director, Retail Capital Markets, Newmark We all know the commercial real estate industry is cyclical and there are casualties in every cycle across asset classes. However, retail seems to always be in everyone’s crosshairs. It quite frequently is the tail wagging the dog across institutional investors. Consider this, though: if there is one thing the pandemic has proven (once again), it is that the retail sector as a whole is one of the most resilient in the industry. Nowhere in the country is this statement more evident than here in Orange County. While investment sales activity was sluggish overall in 2021, picking up largely in the fourth quarter, retail leasing activity was record breaking. Annual net absorption turned positive after nine consecutive quarters of losses. Vacancy rates have not yet returned to pre-pandemic levels, but rent growth has reach a new all-time high as of year-end 2021. Tenants and landlords were both motivated to sign leases in 2021 to satisfy the increased market demand from consumers yearning to get out and be social again. Society wanted to spend its money on soft goods, dining out and enjoying the retail experience that was so sorely missed in 2020. On the investment …