Oct 4 U.S. retail mall vacancies fell 10 basis
points in the third quarter from the second as high-end regional
malls helped offset slower growth in smaller retail spaces like
community centers, according to real estate research firm Reis
Retail mall vacancies fell to 7.8 percent from 7.9 percent,
the firm said in a report on Tuesday.
Asking and effective rents for shopping centers rose for a
third straight quarter, while rent growth rate was unchanged
from the second quarter at 0.4 percent, Reis said.
"We continue to expect vacancy rates for neighborhood and
community centers to slowly drift lower and rent growth to
increase at a slightly faster rate," Barbara Denham, senior
economist at Reis, said.
The national vacancy rate for neighborhood and community
shopping centers rose to 10 percent, up 10 basis points from the
Construction activity accelerated with 2.53 million square
feet of new neighbourhood and community center space completed
during the third quarter, the highest level of completions in
the past four quarters.
Net absorption, which is measured in terms of available
retail space sold in the market during a certain time period,
plummeted over 96 percent from the second quarter to a paltry
143,000 square feet.
Denham said the fall in net absorption was a "troubling
finding" and attributed the reduction to "a delayed response to
tepid economic conditions in the first quarter."
"With job growth and gains in median family income across
the U.S., the retail recovery should continue," Denham added.
(Reporting by Shashwat Awasthi in Bengaluru)