Retail Vacancies Hit Highest Number In 17 Years
kailee bradstreet
- October 20 2009
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The latest research released by the Federal Reserve and the International Council of Shopping Centers’ 2008 study contains some sobering news. Store closings have reached the 8,300 mark, retail space vacancies are at 17-year high, and an drop in demand has lead to an overall decrease in retail lease rates. Real estate experts are now predicting that a full recovery from the economic downtown may not be seen until 2012, according to an article published by Retail Info Systems News:
“One key indicator to watch is in the commercial real estate industry, where there have been 8,300 store closings announced by retailers this year according to the Federal Reserve. This figure includes more than 1,500 large anchor stores. These come on top of a large number of store closings in 2008, which the International Council of Shopping Centers’ 2008 says totaled 6,900.
“Until we see stabilization and recovery take root in both consumer spending and business spending and hiring, we do not foresee a recovery in the retail sector until late 2012 at the earliest,” says Victor Calanog, research director of real estate research firm Reis Inc. “Continuing job losses and inconsistent consumer spending patterns will weigh on retail properties for at least another 18 to 24 months.”
…Retail vacancies at U.S. shopping centers rose to a 17-year high as unemployment climbed, consumers cut spending and 8,300 stores closed. Vacancies at U.S. shopping centers increased 10.3 percent in the third quarter, the highest level since 1992, from 8.4 percent recorded in the same period a year ago according to according to Reis. Vacancies at regional and super-regional malls rose 8.6 percent from 6.6 percent a year earlier.“
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