LATEST REPORT: 2Q20 Raleigh-Durham Retail Market Report18 Aug 2020
The Triangle retail market showed increased signs of strain in 2Q20 as social distancing mandates and economic challenges continued to significantly alter consumer behavior. Absorption fell into the red by nearly 48,000 sf for the quarter, sending vacancy up 30 bps to 7.7%. More fallout is undoubtedly on the way for the sector. Amid a surge in positive cases and hospitalizations, North Carolina extended Phase 2 of its reopening plan through September 11, keeping bars and gyms closed and mandating limited capacity at restaurants, stores and service providers such as salons. The market will face sustained upward pressure on vacancy through the end of the year and into 2021 as a growing list of bankruptcy filings by major national brands will likely lead to more local closures. Meanwhile, grocers continue to expand and adapt, offering curbside pickup and deliveries. Publix and Wegmans will open new locations in Downtown Raleigh and Cary in 3Q20.