Here’s a great quick pair of charts from Jefferies. The top chart shows the rent trend for offices. The bottom trend shows the rent trend for physical retail stores.
It’s a great demonstration of a cyclical decline vs. a secular decline. Offices aren’t going anywhere, and so with the economic recovery, the cost of rents have bounced back nicely.
Retail is getting gobbled up by various trends, including e-commerce (the hollowing out of malls and department stores is well established. So there’s no rental recovery at all. The distinction couldn’t be more clear.