Retail Construction Returns

Approximately 18.0 million square feet of U.S. retail space was created in the last 12 months, according to Cassidy Turley’s 2014 Retail Forecast. In comparison, only 23.2 million sf were added between 2009 and 2012.

Expanded space and redevelopment in the form of urban infill comprised the bulk of retail deliveries this year and account for nearly 60 percent of new product in 2013. Community and neighborhood strip centers experienced the greatest space gains with nearly 10.4 million sf delivered. Nearly all 4.5 million sf of specialty center space added in this was in outlet centers. Malls and power centers added less than 2.5 million sf and 2.0 million sf respectively, according to the report.

Projects currently under construction are following the same pattern. With 6.8 million sf under construction, strip centers account for nearly half of the 14.4 million sf of retail space currently in development, the largest amount in nearly five years. Specialty center construction sits at 3.2 million sf, followed by malls with approximately 2.4 million sf, and power centers with less than 2.0 million sf.

The momentum in construction is expected to continue with 36 proposed projects of 1.0 million sf or greater in the pipeline.

Download the complete report (PDF).