This is news landlords have been eagerly waiting for: New York-based research firm Reis Inc. just reported that the vacancy rate for U.S. malls fell for the first time in three years in the third quarter, to 8.8 percent from 9.0 percent the quarter prior. The vacancy rate for strip centers didn't budge, but neither did it increase. (Here's a version of the story with a graph, courtesy of Calculated Risk).
Yet Reis researchers caution the retail real estate industry against too much optimism. Many long-term leases are set to expire in the fourth quarter, they say, and it's likely that in the current subdued retail environment, many tenants will not renew. For more stories on retail and retail real estate, follow the links below:
- Bain Buys Gymboree for $1.8 Billion (The New York Times)
- More Retail Buyout Chatter: Is OfficeMax Next? (The New York Times)
- Dollar Tree to Buy Canada's Dollar Giant Store for C$52Mln (RTT News)
- A Phased Solution for Filene's Site (The Boston Globe)
- A Wal-Mart Urban Push Could Transform Markets (Supermarket News)