Leaps of space
Sep 1, 2008 12:00 PM
Retailer closings and bankruptcies began to take their toll in the second quarter as vacancy rates jumped significantly at neighborhood and community centers and at regional malls, according to the latest data from New York City-based Reis, Inc.
During the quarter, the vacancy rate for U.S. neighborhood and community shopping centers jumped 50 basis points from the first quarter and now stands at 8.2 percent. That's the highest level since 1995. The jump is also larger than the previous quarter when vacancy rates rose 20 basis points. Overall, the vacancy rate on neighborhood and community shopping centers is up 90 basis points over the past 12 months. Meanwhile, asking-rent growth at neighborhood and community shopping centers dropped to 0.4 percent in the second quarter from 0.5 percent in the first quarter and 0.8 percent a year earlier.
Meanwhile, vacancy rates at regional and superregional malls increased 40 basis points during the quarter, to 6.3 percent. That's the highest level for regional malls since 2002, according to Reis.
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