Whether it is the sales inside stores or the selling or leasing of retail buildings, 2021 was a good year for retail.
In 2020 at the beginning of the Covid-19 pandemic, the retail industry took a major hit with many businesses deemed non-essential and forced to shut down. And at the same time, fewer consumers were going out and actually shopping in person. Retail sales took a hit and so did interest in buying new retail properties and stores and restaurants sought concessions from landlords when they couldn’t pay rent.
But in 2021 things shift and retail sales were up and demand for retail properties was higher than ever, in many ways thanks to financial relief programs from the federal government that benefitted both business owners and consumers. Phoenix was one of the best-performing markets in the country last year, according to a recent report from commercial real estate firm Kidder Mathews.
“The termination of Covid restrictions early in 2021 accelerated the economy, and nation-leading population growth, household formation, strong employment growth, and a low cost of living is driving retail demand,” the Kidder Mathews report said about Phoenix.