Construction costs will start softening in mid-2023 and land costs will stabilize or dip. This should help open doors for more retail development. New space availability in 2023 will likely revolve around non-anchored shopping centers. Consumers will lean into the resale sector from the influences of inflation and sustainability benefits.
Experts believe the supply chain issues will begin to moderate in 2023, although the supply-demand imbalance is here to stay.
Retailers are expected to continue to source space to hit their growth targets as the economy starts to stabilize.