The growth is primarily being driven by value retailers, it was found. Credit: Ritu Manoj Jethani via Shutterstock.

A new report from retail real estate company DLC highlights the explosive growth of open-air retail in US suburban markets.

According to DLC, for the past 15 years, the gross leasable area in open-air retail has shrunk and continues to do so as construction costs have increased by between 30% and 40% since 2020.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

This has resulted in an increase in competition for space among open-air tenants.

In 2023, DLC lease renewals for spaces in excess of 10,000ft² clocked in at 98%, and the average time to lease retail vacant space is at an all-time low.

Store openings exceeded closings in 2023 for the third consecutive year, with growth concentrated in the country’s suburbs and non-major markets.

See Also:

Some major upcoming open-air retail projects in the US are Verrado Marketplace in Arizona, Belmont Park Retail Village in New York, and Montgomery Promenade in New Jersey.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

DLC finds that the retailers driving this growth are value retailers, including T.J. Maxx, Burlington, Ross Dress For Less, and Five Below, which reportedly get two to three times more visits than overall retail.

Traditional shopping centre brands (such as Macy’s, Ulta, and Claire’s) are also said to be flocking to neighbourhood centres.

Retailers are also leveraging technology, improving shopping flow, enhancing efficiency, and updating aesthetics to elevate customers’ in-store experience.

DLC founder and CEO Adam Ifshin commented: “Open-air centres are located exactly where traditional and emerging retailers alike want to be – in the backyard of the consumer.”