Tuesday, April 06, 2010

Reis: Strip Mall Vacancy Rate Hits 10.8%, Highest since 1991

by Bill McBride on 4/06/2010 11:59:00 PM

Strip Mall Vacancy Rate Click on graph for larger image in new window.

From the WSJ: Shopping-Center Malaise

Vacancies at shopping centers in the top 77 U.S. markets increased to 10.8% in the first quarter ... according to Reis.

It is the highest vacancy rate since 1991, when vacancies reached 11%.
This is up from 10.6% in Q4 2009 and 9.5% in Q1 2009.
Vacancy rates at malls in the top 77 U.S. markets rose to 8.9% in the January-to-March period ...
The 8.9% is the highest since Reis began tracking regional malls in 2000. Lease rates fell for the seventh consecutive quarter.
"The stress might be lessening and rent declines might be moderating," said Reis director of research Victor Calanog. "But we don't see positive rent growth resuming until the middle of next year at the earliest, just because of the typical lag."

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