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2016: The year of the consumer

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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

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Keywords : Cushman & Wakefield