Headlines

Strip Mall Vacancies Rise

Research firm reports weak demand for space

Published

11 years ago

April 8, 2013

steve kaufman

The national vacancy rate for U.S,. strip mall space declined very slightly from the fourth quarter of 2012 to the first quarter of 2013, from 10.7 percent to 10.6 percent, as limited supply of new malls helped offset weak demand for space.

The results were reported by Reis Inc., a real estate research firm.

New construction for neighborhood strip centers remained near record low levels during the quarter, according to the report.

Regional malls continued to improve in the first quarter, but top-tier malls drove the lower vacancy rate and higher asking rents. “Others continue to suffer from soft U.S. consumer demand and competition from online retailers,” said the report.

“Until the economy begins to create more and better jobs, retail sales will remain listless, demand will remain at low levels, and the vacancy compression will be slow and tedious,” said Reis economist Ryan Severino.

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