The recession has caused a pullback in retail growth, especially in hard-hit states such as California. But real estate investment firm Marcus & Millichap’s 2009 National Retail Report found the majority of top U.S. retail markets are in California and are projected to have among the lowest vacancy rates. The Golden State’s “wildly varying demographics,” work in its favor, said Bernard J. Haddigan, managing director of Marcus & Millichap. “Some of the more affluent areas, like San Diego and San Jose, are still in demand, while others like San Bernardino have been decimated.” On the other hand, the highest vacancy rates are mainly in the Midwest and Texas, which may present an opportunity for stores looking to expand into new markets — and cheap ones, at that.
NUMBERS 1 - 5 represent U.S. retail markets with the HIGHEST EXPECTED VACANCY RATES in 2009.
SOURCE: Marcus & Millichap's 2009 National Retail Report; Vacancy rates are one supply-and-demand indicator used to determine U.S. retail markets’ overall retail outlook for 2009 (other factors include forecasted employment growth, construction and rent growth, among other indicators); **INDICATES A TIE.