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Retail construction activity, new project starts fall in Q3

Retail construction activity slowed down in the third quarter as increased costs continued to put pressure on new development.

New construction starts fell to their lowest quarterly total since at least 2016 in the third quarter. Developers broke ground on about 7.7 million square feet of retail space during the period. This was a notable decrease from 10.7 million square feet in the second quarter.

Based on current conditions, with construction starts at their lowest level in at least a decade and financing costs moving higher, expect the pipeline is likely to shrink further before any meaningful recovery takes hold.

CoStar: Retail construction activity, new project starts fall in Q3 | Chain Store Age

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