WASHINGTON–(BUSINESS WIRE)–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.
