Retail landlords in Myrtle Beach are finding reasons to stay optimistic as the market shows steady improvement, according to a recent industry report.

While absorption remained slightly negative in the second quarter at -15,000 square feet, that’s a major improvement over the -352,000 square feet recorded previously. A low vacancy rate—now just 2% after improving by 12 basis points—helped keep the market relatively stable.

Much of the negative absorption was tied to tenants vacating space ahead of renovations, particularly at Coastal Centre in Conway. The property is undergoing redevelopment to stay competitive with new retail projects like the planned Conway Coastal Marketplace, fueled by population growth along the SC-501 corridor.

Available quality retail space is increasingly scarce, and new construction has slowed as well—dropping to 173,400 square feet compared to 276,600 square feet in the previous 12 months. Asking rents, however, ticked up slightly to $21.98 per square foot.

One area of concern is consumer spending, which slipped 0.4% due to softer hospitality demand and fewer out-of-market visitors. Even so, Colliers remains confident about the long-term outlook for Myrtle Beach retail, predicting strong rent growth ahead.

The largest lease signed in the second quarter was at 300 S. Kings Hwy, where a tenant took over 14,200 square feet of space.

Source: GlobeSt.