Retail is a bright spot in the otherwise dim outlook for commercial real estate. In Q2, office vacancy rates soared to a 30-year high of 18.2%, while the vacancy rate for retail space fell to 4.8% - the lowest level since real estate firm CBRE started tracking it 18 years ago. And 1,000 more stores are expected to open than to close this year.Remote WorkOffice vacancies in New York were 22.4% in Q2, while in San Francisco 32% of offices were vacant, according to Cushman & Wakefield. The overall vacancy rate in the Dallas-Fort Worth office market is 24.5% in Q2 2023, per Partners Real Estate.London is faring much better, but still vacancy rates are 9.4% compared with a pre-pandemic rate of 5.5%, per JLL. Paris office vacancies are at 7.5%, per CBRE. The global vacancy rate is around 14%, with Asia at about 13%, per JLL.Physical Retail ReboundIn contrast, commercial retail continues to face a tightening supply. The pandemic seemed to have fueled more retailers to refocus on physical stores - with a resurgence in store openings in many key global markets. Both high streets and malls are benefitting.No (Retail) VaccanciesAverage availability rates in Cushman & Wakefield’s Manhattan data have declined for eight quarters in a row, and are at 19.4% as of Q1 of 2023. In the US as a whole, retail availability dropped to 4.8 percent in the second quarter, according to CBRE. That’s the lowest vacancy rate the firm has recorded in its 18 years of tracking.Following three consecutive quarters of stable performance, in Q2 2023, Greater London’s vacancy rate fell 20 points to 10%, per CBRE's Central London Retail Market Summary.Simon Properties, a leading retail property owner, said occupancy rates were 95% at June 30, 2023.