Malls Power Center Neighborhood Center Strip Center General Retail Other Market Vacancy Change (YOY) Net Absorption SF Deliveries SF Rent Growth Sales Volume 5,266,780 4,929,479 12,787,135 4,445,640 36,492,161 428,771 64,349,966 0.3% (4.8 K) 295 K 2.6% $236 M 15.7% 3.9% 11.1% 9.1% 2.9% 0% 6.1% 5.7% 591,944 646,993 -0.1% $159.2M $14.54 $16.39 $13.56 $12.89 $14.16 $16.40 $14.17 6.1% 337,245 357,653 0.7% N/A 8.2% 4.6% 10.8% 9.6% 3.3% 0% 5.7% 7.4% 1,705,324 1,624,710 2.7% $326.9M 0 0 (58,414) (13,299) 3,380 0 (68,333) 2007 Q2 2008 Q1 2008 Q1 2020 Q2 2019 Q4 0 0 0 0 0 0 0 4.5% (340,244) 181,504 -3.7% $57.6M 0 0 0 0 282,076 0 282,076 2017 Q3 2018 Q3 2011 Q4 2010 Q3 2009 Q3 Current Quarter Annual Trends RBA 12-Month Vacancy Rate Historical Avg. Market Rent Forecast Avg. Availability Rate Peak When Net Absorption SF Deliveries SF Trough When Under Construction KEY INDICATORS NET ABSORPTION, NET DELIVERIES & VACANCY Q2 RETAIL MARKET REPORT Source: Co-Star Retail Market Report Second quarter saw a positive absorption of 81,224 SF largely due to a few transactions. Vacancy is forecast to grow through the end of 2020 and into 2021. The growing vacancy rate will likely have a downward pressure on rents this period. Sales volume has dropped signiﬁcantly through the initial half of 2020 with per square foot value also dropping during this time and expected to continue to drop into 2021. As we continue through 2020, we will keep watch on how COVID impacts the retail market: • How retailers and restaurants perform now that their PPP funds have been used • Number of bankruptcies through the end of the year and how that translate to store closings • How activity fairs with prior recent years during the fall season 13340 California Street STE 100, Omaha, NE 68154 | 402 697 8899 | omnepartners.com

Q2 RETAIL MARKET REPORT - omnepartners.com€¦ · PROPERTIES UNDER CONSTRUCTION SALES VOLUME & MARKET SALE PRICE PSF 12 325,274 0.5% 91.7% Properties Square Feet Percent of Inventory

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Page 1: Q2 RETAIL MARKET REPORT - omnepartners.com€¦ · PROPERTIES UNDER CONSTRUCTION SALES VOLUME & MARKET SALE PRICE PSF 12 325,274 0.5% 91.7% Properties Square Feet Percent of Inventory

Malls

Power Center

Neighborhood Center

Strip Center

General Retail

Other

Market

Vacancy Change (YOY)

Net Absorption SF

Deliveries SF

Rent Growth

Sales Volume

5,266,780

4,929,479

12,787,135

4,445,640

36,492,161

428,771

64,349,966

0.3%

(4.8 K)

295 K

2.6%

$236 M

15.7%

3.9%

11.1%

9.1%

2.9%

6.1%

5.7%

591,944

646,993

-0.1%

$159.2M

$14.54

$16.39

$13.56

$12.89

$14.16

$16.40

$14.17

6.1%

337,245

357,653

0.7%

N/A

8.2%

4.6%

10.8%

9.6%

3.3%

5.7%

7.4%

1,705,324

1,624,710

2.7%

$326.9M

(58,414)

(13,299)

3,380

(68,333)

2007 Q2

2008 Q1

2020 Q2

2019 Q4

4.5%

(340,244)

181,504

-3.7%

$57.6M

282,076

2017 Q3

2018 Q3

2011 Q4

2010 Q3

2009 Q3

Current Quarter

Annual Trends

RBA

12-Month

Vacancy Rate

Historical Avg.

Market Rent

Forecast Avg.

Availability Rate

Peak When

Net Absorption SF Deliveries SF

Trough When

Under Construction

KEY INDICATORS

NET ABSORPTION, NET DELIVERIES & VACANCY

Q2 RETAIL MARKET REPORTSource: Co-Star Retail Market Report

Second quarter saw a positive absorption of 81,224 SF largely due to a few transactions. Vacancy is forecast to grow through the end of 2020 and into 2021. The growing vacancy rate will likely have a downward pressure on rents this period. Sales volume has dropped significantly through the initial half of 2020 with per square foot value also dropping during this time and expected to continue to drop into 2021.

As we continue through 2020, we will keep watch on how COVID impacts the retail market:

• How retailers and restaurants perform now that their PPP funds have been used• Number of bankruptcies through the end of the year and how that translate to store closings• How activity fairs with prior recent years during the fall season

13340 California Street STE 100, Omaha, NE 68154 | 402 697 8899 | omnepartners.com