U.S. Shopping Center Vacancies Rise to 14-Year High, Reis Says
By Hui-yong Yu
Oct. 6 (Bloomberg) -- Vacancies at U.S. neighborhood and community shopping centers reached a 14-year high in the third quarter, rising to 8.4 percent, as the credit crisis and slowing economy took a toll on retailers, Reis Inc. said.
Vacancies rose from 8.1 percent in the second quarter and were the highest since 1994, when they reached 8.7 percent, according to the New York-based real estate research firm.
At regional and supermalls, the vacancy rate rose to 6.6 percent last quarter from 6.3 percent in the second quarter, the highest since the fourth quarter of 2001, when it was 6.8 percent. Vacancies were up from 5.5 percent a year earlier.
The global credit crunch, waning confidence and high gasoline costs have hurt retail demand. U.S. same-store sales, or revenue from stores open at least one year, fell 1.3 percent month-to-date for the week ended Sept. 27, compared with the previous month, according to Johnson Redbook Research.
Rental growth stagnated in the midst of rising vacancies. Asking rents at shopping centers fell 0.1 percent in the third quarter from the second, while asking rents at malls rose 0.1 percent, Reis said.
Neighborhood shopping centers typically have 30,000 to 150,000 square feet (2,800 to 14,000 square meters) of retail space and are anchored by a supermarket, according to the International Council of Shopping Centers. Community centers usually have 100,000 to 350,000 square feet, are open-air, and are anchored by two or more discount department, drug, grocery, or home-improvement stores.
Regional malls typically have 400,000 to 800,000 square feet of space with two or more anchors, usually department stores. Super-regional malls have at least 800,000 square feet of space and usually have three or more anchors.
To contact the reporter on this story: Hui-yong Yu in Seattle
By Hui-yong Yu
Oct. 6 (Bloomberg) -- Vacancies at U.S. neighborhood and community shopping centers reached a 14-year high in the third quarter, rising to 8.4 percent, as the credit crisis and slowing economy took a toll on retailers, Reis Inc. said.
Vacancies rose from 8.1 percent in the second quarter and were the highest since 1994, when they reached 8.7 percent, according to the New York-based real estate research firm.
At regional and supermalls, the vacancy rate rose to 6.6 percent last quarter from 6.3 percent in the second quarter, the highest since the fourth quarter of 2001, when it was 6.8 percent. Vacancies were up from 5.5 percent a year earlier.
The global credit crunch, waning confidence and high gasoline costs have hurt retail demand. U.S. same-store sales, or revenue from stores open at least one year, fell 1.3 percent month-to-date for the week ended Sept. 27, compared with the previous month, according to Johnson Redbook Research.
Rental growth stagnated in the midst of rising vacancies. Asking rents at shopping centers fell 0.1 percent in the third quarter from the second, while asking rents at malls rose 0.1 percent, Reis said.
Neighborhood shopping centers typically have 30,000 to 150,000 square feet (2,800 to 14,000 square meters) of retail space and are anchored by a supermarket, according to the International Council of Shopping Centers. Community centers usually have 100,000 to 350,000 square feet, are open-air, and are anchored by two or more discount department, drug, grocery, or home-improvement stores.
Regional malls typically have 400,000 to 800,000 square feet of space with two or more anchors, usually department stores. Super-regional malls have at least 800,000 square feet of space and usually have three or more anchors.
To contact the reporter on this story: Hui-yong Yu in Seattle
