With consumer confidence declining, the outlook for retail sales, excluding food and energy, will be affected. This will be a drag on the demand for retail space.
Newsday reported that “Along with increased gas and food prices, New Yorkers were uneasy about government budget cutbacks, residents told pollsters. “Unfortunately, as we warned a month ago, Mideast turmoil as well as U.S. budget battles punctured the confidence balloon New Yorkers floated in January,” Lonnstrom said.”
In addition, Newsday also reported “Nearly two-thirds of New Yorkers said their finances are being strained by the cost of groceries. Nearly half said both gasoline and food prices are having either “a somewhat or very serious impact on their finances.”