Vacancies were up at U.S. open-air centers during the fourth quarter, but down for regional malls, according to data from New York City–based real estate research firm Reis.
The vacancy rate at open-air shopping centers rose to 10.9 percent from 10.6 percent a year ago, according to research firm Reis. That’s still significantly below the 30-year record high of 11.1 percent vacancy recorded by the firm in 1990. Meanwhile, at regional and super-regional malls, vacancies fell to 8.7 percent in the fourth quarter from 8.8 percent both in the third quarter and a year ago, Reis said.
Retailers absorbed about 92,000 square feet of new or empty shopping center space last quarter, less than the 474,000 square feet absorbed in the third quarter, Reis said. In the fourth quarter of 2009, retailers vacated about 2.6 million square feet of space, the firm says.
Effective rents, or what tenants actually pay, dropped to an average $16.56 per square foot in the fourth quarter for open-air centers from $16.81 a year ago, Reis said. At malls, fourth-quarter effective rents were slightly up from a year ago to $38.79 per square foot.
Compiled by the staff of Shopping Centers Today. © January 05, 2011 International Council of Shopping Centers.