Consumer spending is expected to accelerate in 2016 to its strongest pace in more than a decade after rising 3.1% in 2015.
• Continuing low oil prices and stronger wage growth will be the key drivers of consumer spending.
• The impact of this improvement on retail commercial real estate (CRE) is expected to be positive, but will be significantly offset by intensifying competition from online sales.
• Retail CRE will also be heavily influenced by consumer income and spending patterns, with luxury and discount stores doing well while mid-priced stores face challenges.
• All in all, 2016 will likely be the year of the consumer, which should support the retail CRE sector throughout the year.
Source : Cushman & Wakefield