Recently, retailers have had a hard time finding space in which to put new stores. The problem is that there are not a lot of buildings going up to begin with.

Retail construction completions fell to 5.7 million square feet in the second quarter, setting record lows for both quarterly and rolling four-quarter totals, according to CBRE. The commercial real estate firm cited rising construction costs and labor shortages. The low level of construction has kept the availability of retail space tight. Retail space availability held at an extremely low 4.9% in the second quarter, according to the real estate firm.

“That has made it very difficult for retailers who are in expansion mode trying to find desirable, well-located space,” said Ebere Anokute, Americas head of retail research for CBRE, who was previously a real estate manager for Warby Parker. He added that retailers have been less willing to move into older or lower-cost properties. “We’re seeing a major flight to quality in the industry right now.”

Retail construction hits record lows, making it hard to find space