Vacancy rates at U.S. neighborhood and community shopping centers fell to 10.1 percent in the second quarter, marking the first time such vacancies have declined since the second quarter of 2016, according to research firm Reis.
Meanwhile, asking and effective asking rents in these sectors rose by 0.4 percent in the quarter, according to the Reis report.
Regional mall vacancy remained steady at 9.3 percent, having risen in previous quarters on store closures from Charlotte Russe, Gymboree, JCPenney, Payless and Sears.
Grocery stores have been a leading new occupant of vacated spaces over the past year or so
“The stability of the trends this quarter shows how the retail sector has been able to withstand structural changes in the industry, to some extent,” the report reads. “As big-name anchor stores clear out, a number of stores continue to open. Grocery stores have been a leading new occupant of those vacant spaces over the past year or so, as have home/houseware stores, gyms/fitness, discount variety stores, discount clothing stores, and even trampoline parks.”
Net absorption has outpaced new construction of neighborhood and community shopping centers, amounting to about 2.4 million square feet in the second quarter, nearly double that of the first quarter’s roughly 1.3 million square feet, according to Reis.
By Edmund Mander