DLC Report Highlights Robust Growth in Open-Air Retail Sector

DLC, a leading manager of open-air retail spaces, has released a new report detailing significant growth in this sector, specifically within American suburban areas. The report, titled "Too Good To Ignore," examines critical retail metrics such as traffic, tenant sales, and occupancy levels, which have all surpassed previous records. This growth is marked by a notable increase in same-store Net Operating Income (NOI), which has risen by 6.6% over the last year.

The research outlines several key trends driving this success. Notably, the scarcity of new developments over the past 15 years has fueled competition for available spaces, with the construction costs rising significantly. This tight market has benefited DLC, with lease renewals for large units at 98% and retail spaces filling rapidly. Additionally, the mix of tenants at open-air locations has evolved, with a shift towards value-oriented retailers and non-retail businesses seeking proximity to consumers.

The report also highlights in-store shopping's continuing importance, with physical stores accounting for the majority of retail sales and providing significant customer spending opportunities. This physical retail engagement is further enhanced by the adoption of hybrid shopping models like click-and-collect, which continue to boost sales.

DLC executives underscore the strategic positioning of their properties to capitalize on these trends, optimizing their portfolio to meet both traditional and emerging retail needs. With limited vacancies, DLC is poised to reimagine and maximize the utility and profitability of their properties.