Research + Studies
U.S. shopping centers turned in a strong performance in the first quarter of this year, with total operating income and rents rising, according to ICSC Research, citing data from the National Council of Real Estate Investment Fiduciaries (NCREIF).
Net operating income for the quarter rose by 0.9 percent across all U.S. centers, versus last year's comparable quarter. Total operating income on a square-foot basis increased by 1.7 percent, compared with the year-ago quarter, marking the 29th consecutive quarter of growth. Base rent, a subset of total operating income, rose by 2.4 percent.
NOI at open-air centers reached $4.20 per square foot in the first quarter
Net operating income at open-air centers — a category that includes neighborhood, community and power centers — reached $4.20 per square foot in the first quarter, up by 1 percent from the 2018 comparable quarter. Base rents rose by 2.2 percent, meanwhile, their biggest gain in a year.
At malls, first-quarter base rents rose by 3.2 percent, versus the first quarter of last year, bringing rents to $29.29 per square foot for the past four quarters
At malls, base rents went up by 3.2 percent, versus the first quarter of last year, bringing rents to $29.29 per square foot for the past four quarters. NOI rose by 0.5 percent, achieving $32.50 per square foot for the past four quarters.
NCREIF collects this data from investment managers at approximately 1,000 retail centers. The full ICSC report is available here.
By Edmund Mander