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Some retail tenants look to aggressively expand in 2023 - San Francisco Business Times

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It's not expansion across the board in retail, though. Several retailers have already announced store closures for 2023.

, managing director at Northmarq, said certain categories of retail, such as convenience stores and dollar stores, tend to have aggressive growth plans in any given year.

The national vacancy rate for neighborhood and community shopping centers remained flat, at 10.3%, for the fifth straight quarter, according to Moody's. With less vacant retail space sitting on the market, that could present new challenges for companies accustomed to backfilling that space. "Those characteristics in 2022 and heading into 2023 are better than they were in the past," Graziano said."Retail was really the first property type to take a hit during Covid."

Still, total retail sales between Nov. 1 and Dec. 24 — the primary holiday shopping season — were up 7.6% on an annual basis while in-store spending grew 6.8% as compared to last year, according to the MasterCard SpendingPulse published in late December. Restaurants had a big comeback, in particular, with 15.1% more spending in those establishments this holiday season.

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