CoStar Group Publishes New Retail Sector Findings
May 19 2022 - 10:10AM
Business Wire
Using New Data, Dynamic Submarkets are
Identified to Predict Outperformance of Retail Assets
Researchers at CoStar Group, Inc. (NASDAQ: CSGP) – a leading
provider of online real estate marketplaces, information, and
analytics in the commercial and residential property markets –
today unveiled a new look at recovery trends among the commercial
real estate retail market in the aftermath of the global
pandemic.
According to analysts at CoStar Group, Live-Work-Play office
nodes are emerging as a trend that can help protect urban retailers
from elevated levels of remote-working.
“Before the pandemic, retail within urban office areas served as
an easily accessible amenity to office employees – perfect for
running errands and grabbing lunch with coworkers or a client –
however, with physical office occupancy still well below the
pre-pandemic baseline, urban retail locations continue to miss out
on an important revenue stream,” said Peter Ferramosca, Consultant,
CoStar Group. “Our research has found that ongoing mixed-use
development trends that create a ‘live-work-play’ environment could
limit the negative effect of lower office usage on nearby retail
and has the potential to offer outsized returns for investors.”
Among the office nodes identified by CoStar Group researchers,
the Hudson Waterfront submarket and the NoMa submarket in
Washington D.C. most stood out.
According to CoStar Group data, more than half of Hudson
Waterfront’s commercial real estate inventory is comprised of
apartment rentable building area (RBA). Additionally, retail rent
growth in Hudson Waterfront has outperformed the broader New York
City retail market by 90 basis points from the fourth quarter of
2019 to the first quarter of 2022.
Ferramosca continued: “Our data is telling us that office nodes
with relatively high densities of multi-family units could offer
greater sales potential for local retailers. On average, apartment
dwellers spend more consistently during the week on necessities and
continue to boost weekend spending on shopping and entertainment,
making it a potentially thriving environment.”
Supported by both its stability from government office
concentration and its inventory being 33% multi-family, Washington
D.C.’s NoMa submarket is another standout. Retail vacancies in this
office node have compressed by 4.3% more than D.C. 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. (NASDAQ: CSGP) is a leading provider of
online real estate marketplaces, information and analytics. Founded
in 1987, CoStar conducts expansive, 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 unmatched insight on
commercial property values, market conditions and current
availabilities. STR provides premium data benchmarking, analytics
and marketplace insights for the global hospitality industry. Ten-X
provides a leading platform for conducting commercial real estate
online auctions and negotiated bids. LoopNet is the most heavily
trafficked commercial real estate marketplace online.
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 seeking
great apartment homes and provide property managers and owners a
proven platform for marketing their properties. Homesnap is an
industry-leading online and mobile software platform that provides
user-friendly applications to optimize residential real estate
agent workflow and reinforce the agent-client relationship.
Homes.com offers real estate professionals advertising and
marketing services for residential properties. Realla is the UK’s
most comprehensive commercial property digital marketplace.
BureauxLocaux is one of the largest specialized property portals
for buying and leasing commercial real estate in France. CoStar
Group’s websites attract tens of millions of unique monthly
visitors. Headquartered in Washington, DC, CoStar Group maintains
offices throughout the U.S., Europe, Canada and Asia. From time to
time we plan to utilize our corporate website, CoStarGroup.com, as
a channel of distribution for material company information. For
more information, visit www.CoStarGroup.com.
This news release includes "forward-looking statements"
including, without limitation, statements regarding CoStar Group's
expectations, beliefs, intentions or strategies regarding the
future. These statements are based upon current beliefs and are
subject to many risks and uncertainties that could cause actual
results to differ materially from these statements, including the
risk that the trends represented or implied by the data will not
continue or produce the results suggested by such trends, including
trends related to commercial real estate fundamentals, mixed-use
development, retail rent growth, and retail vacancies. More
information about 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 stated in CoStar
Group's filings from time to time with the Securities and Exchange
Commission, including in CoStar's Annual Report on Form 10-K for
the year ended December 31, 2021, and Quarterly Report on Form 10-Q
for the quarter ended March 31, 2022, each of which is filed with
the SEC, including in the "Risk Factors" section of those filings,
as well as CoStar's other filings with the SEC available at the
SEC's website (www.sec.gov). All forward-looking statements are
based on information available to CoStar on the date hereof, and
CoStar assumes no obligation to update such statements, whether as
a result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20220519005669/en/
Media: Matthew Blocher CoStar Group mblocher@costar.com
202.346.6775
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