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May Retail Sales Data Shows Strength in Consumer Spending

May retail sales numbers reported throughout businesses operating in national and Philadelphia commercial real estate markets did not disappoint, suggesting a rebound in consumer spending from a slow start to the year. And that’s good news for commercial real estate.

First-quarter consumption related to the U.S. commercial real estate market – including such action taking place involving Philly office space, Philly retail space and Philly industrial space – was relatively weak and volatile, as consumer spending declined on durable goods, such as cars and furniture.

This CoStar Realty Information Inc. report involving U.S. and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

The consumption slowdown raised concerns about the health of the U.S. economy, which relies heavily on Americans’ willingness to consume. Despite the choppy retail sales data at the start of the year involving businesses in U.S. and Philadelphia commercial real estate listings, CoStar economists expected consumer spending to rebound. Those expectations were based on the continued strength of consumer fundamentals, including healthy income growth, subdued inflation, rising wealth and access to credit.

May retail sales data from the Census Bureau was in line with those expectations. Retail sales among businesses operating in national and Philadelphia commercial real estate properties grew 0.5 percent compared from the previous month, and the April data was revised higher. Compared to a year ago, retail sales were up a solid 3 percent.

Sales at warehouse clubs and superstores throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – were especially strong in May, as were food sales at supermarkets and other grocery stores. Food services continued to do well, with especially robust growth at limited-service restaurants. By contrast, sales at department stores declined over the past year, dragged down by double-digit declines in conventional chain stores; sales at discount stores, however, have held up better.

While the American consumers who interact with businesses dealing with national and Philadelphia commercial real estate listings appear happy to spend, all this consumption does not translate into demand for physical retail space. The May retail sales data was in line with the ongoing shift in buying preferences. E-commerce continued to grow at roughly four times the pace of total sales – up 12 percent in May on a year-over-year basis. — By Galina Alexeenko; CoStar Realty Information Inc.

For more information about Philly office space, Philly retail space, and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

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