Eager to build market share, well-financed dollar stores, fitness club operators, personal care services and restaurants fueled first-quarter leasing at open-air center REITs, executives said.

At Kimco Realty, the rental rate on new leases increased by 8.2 percent and the rate on renewal leases rose by 6.4 percent. “We see healthy activity and have consummated multiple leases with grocery stores, off-price and pet supply retailers,” said CEO Conor Flynn. The company owns interests in 378 properties.

At Kite’s 83 properties, new-lease rental rates climbed 12.2 percent and renewal rental rates increased by 6.4 percent. Aldi and Total Wine & More were the company’s two biggest anchor leases signed during the quarter.

These tenants are filling space vacated by troubled tenants and are paying much higher rents, said chairman and CEO John Kite. “Low-paying, often dying tenants have finally left our centers. Not only should this enable us to outperform when it comes to NOI growth, but it allows us to create value by upgrading tenancy, which often results in cap rate compression for the property.”

And at Brixmor’s 393 properties, the number of new leases signed during the first quarter was on par with the peak, which occurred in 2019, president and CEO James Taylor said. “During the quarter, the national and regional teams executed leasing at a blistering pace, signing 1.4 million square feet of new and renewal leases with cash spreads on new leases of over 20 percent. We are seeing demand across all of our core tenant categories, including specialty grocery, home, general merchandise, value apparel, pets, restaurants and health and wellness.” Brixmor also is seeing a remarkable recovery in demand from small-shop tenants, including national, regional and local operators.