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RECOVERY IN NEIGHBORHOOD RETAIL GAINING TRACTION July 11, 2012 (0 comments)
New York, NY—Although small, an encouraging bit of news from the retail front was released last week: both rents and occupancies at neighborhood and community shopping centers are on the upswing.
According to this article on Bloomsburg Businessweek, research company REIS last week released figures showing occupied space in these centers rose 2.06 million square feet in the second quarter of 2012, compared with a net loss of 39,000 square feet a year earlier. Effective rents (rates after landlord discounts) edged up slightly to $16.55 per square foot, up from $16.49/sf last year.
For the second consecutive quarter, vacancies have dropped, falling from a 12-year high reached in 2010 and sustained through most of last year. Though some of the improvement stems from the fact that few new centers are being built, key metrics including occupancy, leasing spreads, and renewals, are getting stronger, said the leading realty company in the sector.