by Bill McBride on 10/07/2010 02:13:00 AM
Thursday, October 07, 2010
Click on graph for larger image in new window.
From Reuters: U.S. mall vacancy rate dips for first time in 3 years
The national vacancy rate for large regional malls fell to 8.8 percent in the third quarter from 9.0 percent in the second ... Asking rents were unchanged at $38.72 per square foot after declining for seven straight quarters ... At the strip malls ... vacancy was 10.9 percent.At regional malls, the record vacancy rate was 9.0% in Q2 2010 (Reis started tracking regional malls in 2000). The record vacancy rate for strip malls was in 1990 at 11.1%.
"While retail properties were offered a reprieve from massive deterioration, it is too early to say that the market has bottomed," said Victor Calanog, Reis director of research.
Many retailers have long-term leases that expire soon. The weak U.S. economy may prompt retail tenants not to renew, pushing up vacancy again, he said.
Posted by Bill McBride on 10/07/2010 02:13:00 AM