Urban Retail Makes a Comeback: A Look at JLL’s City Retail 2024 Report
In recent years, urban retail has faced significant challenges. The COVID-19 pandemic and resulting lockdowns forced stores to close in city centers, causing a decline in foot traffic. However, according to JLL’s City Retail 2024 report, the tide is turning for urban retail.
The report defines prime urban corridors as nationally recognized shopping districts with a mix of high-street and international tenants. These areas are organic rather than planned by one developer and often named after well-known streets within the corridor.
JLL researchers analyzed several North American prime urban corridors for their report and found that office populations have surpassed pre-pandemic levels in major cities while hotel occupancy rates have also rebounded. Additionally, residential population outflows from major cities have stabilized.
Apparel retailers saw an increase in leasing activity as consumers returned to shopping post-pandemic. Athleisure retailers were particularly popular due to the rise of remote work options.
Luxury retailers also fared well thanks to returning tourism and hybrid office workers seeking unique experiences that cannot be replicated online.
Jewelry/accessory stores accounted for 11% of leasing activity while food/beverage users made up approximately 15%. These businesses capitalized on consumers’ desire for occasion dressing or dining out again.
Overall sales increased by 8% year over year for food/beverage stores specifically.
In conclusion, it appears that despite initial setbacks during the pandemic, urban retail is making a strong comeback thanks to consumer spending growth and renewed interest from domestic/international tourists. This trend bodes well not only for traditional apparel/luxury brands but also jewelry/accessory shops and food/beverage establishments looking towards future success on bustling city streets once more!
