T
he nation's capital is expected to experience a robust retail market this year, with vacancy rates projected to hit a five-year low, according to a recent report from Marcus & Millichap. This improvement is largely due to increased demand from retailers, fueled by a growing influx of transplants and strong job creation in the area. Additionally, a lack of inventory is contributing to the decline in vacancy rates as the stock of retail supply is expected to grow only by 0.4 percent this year. Some of the top-performing submarkets include Bethesda-Chevy Chase and East Prince George County, which have both seen significant decreases in vacancy rates due to increased tenant demand. Furthermore, the average asking rent in the market is projected to rise by more than 10 percent compared to 2019. Despite these positive developments, the District is still working on revitalizing struggling subsets of the sector, with local officials recently announcing $3 million in rewards for five businesses opening, reopening, or expanding into vacant downtown spaces.