Thursday, April 07, 2011

Reis: Mall Vacancy rates increase in Q1

by Calculated Risk on 4/07/2011 11:30:00 AM

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

From Bloomberg: Mall Vacancies Climb to Highest in Decade as U.S. Retailers Close Stores

The vacancy rate [at U.S. regional malls] climbed to 9.1 percent from 8.9 percent a year earlier and 8.7 percent in the fourth quarter, [Reis reported]. It was the highest since Reis began publishing data on regional malls in the beginning of 2000.

At neighborhood and community shopping centers, which usually are anchored by discount and grocery stores, the vacancy rate rose to 10.9 percent from 10.7 percent a year earlier. The rate was unchanged from the three previous quarters and the highest since it reached 11 percent in 1991, according to Reis.
The previous record for regional malls 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%.

As noted in the article, stores are still being closed as long term leases expire.

Earlier on Office vacancy rates:
Reis: Office Vacancy Rate declines slightly in Q1
When will Office Investment increase?

And apartment vacancy rates:
Forecast: Rising Rents to slow House Price Declines