Ghost Malls
U.S. Shopping Center Vacancies Approach Record High, Reis Says
"Vacancies at U.S. neighborhood and community shopping centers moved closer to the highest on record in the second quarter amid signs the economic recovery is losing steam and consumer confidence remains subdued, Reis Inc. said.
The vacancy rate at shopping centers rose to 10.9 percent from 10 percent a year earlier and 10.8 percent in the first quarter, the New York-based real estate research firm said in a report today. It was the highest since 1991’s 11 percent. The record for shopping center vacancies since Reis began tracking the data 30 years ago was 11.1 percent in 1990.
“There are really very few reasons to believe that performance deterioration won’t continue for another 18 to 24 months for retail properties, although there are some signs that the pace of decline is moderating,” Victor Calanog, director of research, said in the report."
Several months ago I drove across country from the SW to Florida because of some unfortunate circumstances with my elderly father. I drove I40 east to Memphis, then through Alabama on down. After getting off the interstate a lot of my trip was on secondary roads. I was thoroughly shocked by what I saw. Population centers looked like war zones, but what really struck me were the dead shopping centers. Some chain retail stores remained but for the most part I'd say fifty percent of buildings were shuttered. Twice I wanted to stop at a grocery store for supplies but when I pulled in I saw that they were gone and every store in the center had closed because the anchor retail had left. This was the stretch between Montgomery and Birmingham.
Don't get me started on western Utah.
"Vacancies at U.S. neighborhood and community shopping centers moved closer to the highest on record in the second quarter amid signs the economic recovery is losing steam and consumer confidence remains subdued, Reis Inc. said.
The vacancy rate at shopping centers rose to 10.9 percent from 10 percent a year earlier and 10.8 percent in the first quarter, the New York-based real estate research firm said in a report today. It was the highest since 1991’s 11 percent. The record for shopping center vacancies since Reis began tracking the data 30 years ago was 11.1 percent in 1990.
“There are really very few reasons to believe that performance deterioration won’t continue for another 18 to 24 months for retail properties, although there are some signs that the pace of decline is moderating,” Victor Calanog, director of research, said in the report."
Several months ago I drove across country from the SW to Florida because of some unfortunate circumstances with my elderly father. I drove I40 east to Memphis, then through Alabama on down. After getting off the interstate a lot of my trip was on secondary roads. I was thoroughly shocked by what I saw. Population centers looked like war zones, but what really struck me were the dead shopping centers. Some chain retail stores remained but for the most part I'd say fifty percent of buildings were shuttered. Twice I wanted to stop at a grocery store for supplies but when I pulled in I saw that they were gone and every store in the center had closed because the anchor retail had left. This was the stretch between Montgomery and Birmingham.
Don't get me started on western Utah.
posted by nolocontendere at 7:05 PM
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