U.S. retail vacancy hit lowest level in three years at end of second quarter: Report
Publish Date: July 10, 2013
The average vacancy rate at U.S. retail properties in the second quarter fell to its lowest level in more than three years to 10.5 percent, down from 10.6 percent in the first quarter, according to research firm Reis Inc. Overall second-quarter average asking rent increased 0.3 percent to $19.19 a square foot from $19.13 in the first quarter.
Top-tier malls drove the improvements, while smaller shopping centers continued to reflect a weak economy, the firm said. The average vacancy rate at U.S. malls was at 8.3 percent at the end of the second quarter, the lowest rate in more than four years and down from 8.9 percent one year ago, according to Reis. Grocery-anchored neighborhood centers, ended the quarter with a 10.5 percent vacancy rate, down from 10.8 percent a year ago.
The top nine markets ranked by lowest vacancy rate are in California or the New York area suburbs, according to Reis. San Francisco's vacancy rate was 3.9 percent in the second quarter, significantly healthier than more centrally located markets such as Tulsa, Okla., and Dayton, Ohio, which both reported retail vacancy of 16 percent at the end of the second quarter.