by Bill McBride on 1/09/2012 12:14:00 AM
Monday, January 09, 2012
From the WSJ: For Malls, Occupancy Firms Up
U.S. malls and shopping centers experienced a slight improvement in occupancy during the fourth quarter ... But data service Reis Inc. cautioned that any recovery remains precarious ... "It's too soon to pronounce a turnaround at this point," said Victor Calanog, chief economist at Reis ...Click on graph for larger image.
Malls in the top 80 U.S. markets posted an average vacancy rate of 9.2% in the quarter, down from the 11-year high of 9.4% in the third quarter, according to Reis, which began tracking [regional] mall data in 2000. ... vacancy [for strip malls] remained at 11% ...
Retail landlords also have been helped by a virtual shutdown in new store construction, meaning they face less competition for tenants. Only 4.5 million square feet of shopping-center space opened in 2010, the lowest figure in 31 years, according to Reis. Last year was slightly higher, with only 4.9 million square feet being delivered.
The vacancy rate for regional malls is just below the record set last quarter, and the vacancy rate for strip malls is just below the record set in 1990. It is still very ugly for malls ... but the good news is new construction is at very low levels.
• Summary for Week Ending January 6th
• Schedule for Week of Jan 8th
Posted by Bill McBride on 1/09/2012 12:14:00 AM