Retail sales are remaining relatively stable, and landlords seem more upbeat about the overall retail environment. A recent video interview we did with Michael Glimcher made things sound like they're going in the right direction.
But the unemployment situation is apparently still plaguing shopping-center landlords. Vacancy rates in the third quarter at retail centers held at 10.9%, the same they were during the second quarter and the highest since 1991, according to Reis. (The record of 11.1% was hit in 1990.)
And if the recovery is beginning, shopping centers aren't expected to follow that uptick until the next 12 to 18 months.
What we find most interesting is that regional malls have less vacancy, with their rates only at 8.8%. Wouldn't it make more sense that the necessity retailers in smaller centers would perform better in this environment?
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