Malls Emptier than Ever
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Price: $94.14 -1.83%
Overall Analyst Rating:
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Revenue Growth %: -3.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.6%
Revenue Growth %: -3.2%
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That local mall you patronize feel a little more empty? Morning mall walkers steps seem louder? Shorter line at that Starbucks (Nasdaq: SBUX) kiosk?
Don't feel bad. According to REIS, Inc., regional mall vacancies have climbed to the highest level on record.
Overall, mall vacancies rose for the first time in about a year in the second quarter of 2011. The vacancy rate at neighborhood and community shopping centers nudged up from 10.9 to 11 percent. Rates had held at 10.9 percent since the second quarter of last year.
Rates for regional and super-regional malls escalated to 9.3 percent, the highest on record for REIS. While REIS has only been tracking data since 2000, the number is still remarkable.
Factors contributing to the cut-back in shopping center occupancies include the growing comfort level by consumers with online retailers, as well as lingering unemployment in the U.S.
REIS holds on to the notion of pegging retailers as the last to recover from the recent recession. The firm notes more than a dozen national retailers declared bankruptcy in 2010.
The news may be bad for large mall operators like General Growth Properties Inc. (NYSE: GGP), CBL & Associates Properties Inc. (NYSE: CBL), Macerich Co. (NYSE: MAC), Simon Property Group Inc. (NYSE: SPG), and Taubman Centers Inc. (NYSE: TCO), among others.
Don't feel bad. According to REIS, Inc., regional mall vacancies have climbed to the highest level on record.
Overall, mall vacancies rose for the first time in about a year in the second quarter of 2011. The vacancy rate at neighborhood and community shopping centers nudged up from 10.9 to 11 percent. Rates had held at 10.9 percent since the second quarter of last year.
Rates for regional and super-regional malls escalated to 9.3 percent, the highest on record for REIS. While REIS has only been tracking data since 2000, the number is still remarkable.
Factors contributing to the cut-back in shopping center occupancies include the growing comfort level by consumers with online retailers, as well as lingering unemployment in the U.S.
REIS holds on to the notion of pegging retailers as the last to recover from the recent recession. The firm notes more than a dozen national retailers declared bankruptcy in 2010.
The news may be bad for large mall operators like General Growth Properties Inc. (NYSE: GGP), CBL & Associates Properties Inc. (NYSE: CBL), Macerich Co. (NYSE: MAC), Simon Property Group Inc. (NYSE: SPG), and Taubman Centers Inc. (NYSE: TCO), among others.
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