While the retail vacancy rate in the third quarter declined to 10.1%, from the 10.2% of both last quarter and the third quarter last year, the average mall vacancy rate has reached an eight-year high, inching up 0.1% from last quarter to 9.4%, according to real estate research firm Reis.
As Goldman notes in a recent research report, retailers so far in 2019 have announced or completed a record 11,000+ store closures, already exceeding the annual numbers of the past few years with CoreSight Research projecting the figure to touch an all time high 12,000 by 2019 end.
Curiosuly, Reis' Denham downplayed that latest wave of closures and said the market can withstand it: "The retail sector has withstood numerous store closings, this latest one should not deliver a big blow," she said of the fast-fashion retailer's announcement.
"Retail spending remains healthy as consumer spending keeps climbing in step with job growth. In short, the retail sector is poised to continue to grow at the current slow but steady rate."
"Many malls now have only one, maybe two anchors, where they once had three or more," Keith Jelinek, Managing Director at Berkeley Research Group, told Retail Dive in an interview.
Still, many landlords are finding new tenants, though not always retailers.
"Although retail store closures and bankruptcies still dominate the news, the overall retail property statistics have held steady as new users fill vacated space of large department stores," according to the Reis report.
https://www.zerohedge.com/economics/mall-vanacy-rate-hits-8-year-high-amid-record-number-store-closures
As Goldman notes in a recent research report, retailers so far in 2019 have announced or completed a record 11,000+ store closures, already exceeding the annual numbers of the past few years with CoreSight Research projecting the figure to touch an all time high 12,000 by 2019 end.
Curiosuly, Reis' Denham downplayed that latest wave of closures and said the market can withstand it: "The retail sector has withstood numerous store closings, this latest one should not deliver a big blow," she said of the fast-fashion retailer's announcement.
"Retail spending remains healthy as consumer spending keeps climbing in step with job growth. In short, the retail sector is poised to continue to grow at the current slow but steady rate."
"Many malls now have only one, maybe two anchors, where they once had three or more," Keith Jelinek, Managing Director at Berkeley Research Group, told Retail Dive in an interview.
Still, many landlords are finding new tenants, though not always retailers.
"Although retail store closures and bankruptcies still dominate the news, the overall retail property statistics have held steady as new users fill vacated space of large department stores," according to the Reis report.
https://www.zerohedge.com/economics/mall-vanacy-rate-hits-8-year-high-amid-record-number-store-closures
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