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Wednesday, January 05, 2011

Reis: Strip Mall Vacancy rates steady in Q4

by Calculated Risk on 1/05/2011 12:05:00 PM

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

From Reuters: Rents at big U.S. malls up, but smaller centers lag

In the fourth quarter, vacancies at U.S. strip malls were flat at 10.9 percent ... Asking rent at strip malls fell 0.1 percent ... at large regional malls ... the vacancy rate fell ... to 8.7 percent ... Asking rents rose for the first time since the third quarter of 2008 ...

"We appear to be in a meandering sort of direction," said Reis economist Ryan Severino.
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%.

It appears both the mall and office vacancy rates have peaked (or are near a peak), but the rates are still very high - and it will take some time for the vacancy rates to come down enough to start building again.