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Special Report

U.S. Single-Tenant Net-Leased Retail
National Report

3Q 2022

Labor Market Strength Supports Spending as Headwinds Approach;
Record Single-Tenant Trading Reflects Investors’ Optimism

Historic job count supports positive single-tenant outlook. Accelerated hiring and lower prices at the gas pump are supporting record consumer spending at physical retailers as the fourth quarter approaches. The addition of 841,000 positions in July and August pushed the U.S. employment base beyond the February 2020 level, while the concurrent 18.3 percent drop in gas prices provided some relief to household budgets. Stores, bars and restaurants are benefiting, with the latter segment’s share of core retail sales returning to pre-pandemic levels  in April through August. This consistency indicates consumers are dining out and socializing more, even though prices are higher — behavior that has implications for single-tenant demand moving forward.

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