Retail Stores Are Dying

April 15, 2014 Leave a comment

Retail Stores Are Dying

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JOE WEISENTHAL MARKETS  MAR. 31, 2014, 9:16 PM

Here’s a great quick pair of charts from Jefferies. The top chart shows the rent trend for offices. The bottom trend shows the rent trend for physical retail stores.

It’s a great demonstration of a cyclical decline vs. a secular decline. Offices aren’t going anywhere, and so with the economic recovery, the cost of rents have bounced back nicely.

Retail is getting gobbled up by various trends, including e-commerce (the hollowing out of malls and department stores is well established. So there’s no rental recovery at all. The distinction couldn’t be more clear.

 

Filed under Macro Trends

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