Real Estate Journal Online

Thanks to a lagging job market, the traditional “spring boost” enjoyed by retailers and owners of retail real estate alike is unlikely to take place this year, and the resulting sluggishness in the retail sector could prolong the recovery of commercial real estate in this arena, said Wells Fargo senior economist Mark Vitner last week[1]. Vitner is predicting that some parts of the commercial market might take until 2018 to fully recover, though he acknowledged that non-residential construction is on the rise in the industrial and multifamily sectors.

Not all experts agree with Vitner, however, and some retailers are already reporting a nice business boost from St. Patrick’s Day, as “consumers…look to [the holiday] as their first spring-related celebration,” explained National Retail Federation (NRF) CEO Matthew Shay[2]. With Easter just over the horizon, Shay recommended that retailers take full advantage of the upcoming holidays – traditionally non-gift-giving for the most part – with “decorations, holiday food and even apparel.” However, as long as the job market remains tight, spending will likely also stay down warn experts. Do you think that retailers are just being optimistic or do you think that Vitner’s projections are overly dire?

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Let us know whether you want retail real estate in your Easter basket or if you are hoping the bunny brings you something better…

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[1] http://articles.orlandosentinel.com/2011-02-28/business/os-crfb-real-estate-economy-0228-20110228_1_industrial-facility-lease-recovery

[2] http://independentretailer.com/2011/03/11/retailers-see-spring-business-boost-coming-from-st-patrick%E2%80%99s-day/