Using new data, dynamic submarkets are identified to predict the outperformance of retail assets
Researchers from CoStar Group, Inc. CSGP – a leading provider of online property marketplaces, information and analysis for the commercial and residential real estate markets – today unveiled a new look at recovery trends in the property market. commercial real estate in the aftermath of the global pandemic.
According to analysts at CoStar Group, Live-Work-Play desktop nodes are emerging as a trend that can help protect urban retailers from high levels of remote working.
“Before the pandemic, retail in urban office areas served as easily accessible amenities for office workers – perfect for running errands and grabbing lunch with colleagues or a client – however, the physical occupation of offices still well below the pre-pandemic benchmark, urban retail sites continue to miss an important revenue stream,” said Peter Ferramosca, Consultant, CoStar Group. “Our research revealed that mixed-use development trends that create a ‘live-work-play’ environment could limit the negative effect of reduced office use on nearby retail and have the potential to deliver outsized returns to investors.”
Of the office nodes identified by CoStar Group researchers, the Hudson Waterfront submarket and the NoMa submarket in Washington DC stood out the most.
According to data from the CoStar Group, more than half of Hudson Waterfront’s commercial real estate inventory is made up of rental apartments (RBA). Additionally, retail rent growth in Hudson Waterfront outpaced the broader New York retail market by 90 basis points between the fourth quarter of 2019 and the first quarter of 2022.
Ferramosca continued, “Our data tells us that office nodes with relatively high densities of multi-family units could offer greater sales potential to local retailers. On average, apartment dwellers spend more regularly during the week on necessities and continuing to increase weekend spending on shopping and entertainment, making it a potentially prosperous environment.”
Buoyed by both its stability from the concentration of government offices and its inventory comprised of 33% multi-family housing, Washington DC’s NoMa submarket is another standout example. Retail vacancies in this office node were compressed 4.3% more than DC as a whole.
To learn more about CoStar Group and the company’s industry-leading data and analytics, visit CoStarGroup.com.
About CoStar Group, Inc.
CoStar Group, Inc. CSGP is a leading provider of online real estate marketplaces, information and analysis. Founded in 1987, CoStar conducts extensive and ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unparalleled insight into commercial property values, market conditions and current availability. STR provides premium benchmarking data, analysis and market intelligence for the global hospitality industry. Ten-X provides a leading platform for conducting online auctions and negotiated offers for commercial real estate. LoopNet is the busiest online marketplace for commercial real estate. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters looking for superb apartments and provide property managers and owners with a proven platform for marketing their properties. Homesnap is a leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and strengthen the agent-client relationship. Homes.com provides residential property advertising and marketing services to real estate professionals. Realla is the UK’s most comprehensive digital commercial property marketplace. BureauxLocaux is one of the largest real estate portals specializing in the purchase and rental of business real estate in France. CoStar Group websites attract tens of millions of unique visitors per month. Based in Washington, DC, CoStar Group has offices in the United States, Europe, Canada and Asia. From time to time, we plan to use our corporate website, CoStarGroup.com, as a channel for distributing important company information. For more information, visit www.CoStarGroup.com.
This press release contains “forward-looking statements”, including, without limitation, statements regarding the CoStar Group’s expectations, beliefs, intentions or strategies regarding the future. These statements are based on current beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially from these statements, including the risk that trends represented or implied by the data may not continue or do not produce the results suggested by these trends. , including trends related to commercial real estate fundamentals, mixed-use development, retail rent growth and retail vacancy. Further information on potential factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those set forth in documents filed by the CoStar Group from time to time with from the Securities and Exchange Commission, including in the CoStar report. Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, each filed with the SEC, including in the “Risk Factors” section. of these filings, as well as CoStar’s other filings with the SEC available on the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar as of the date hereof, and CoStar undertakes no obligation to update such statements, whether as a result of new information, future events or otherwise.