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Research + Studies

Shopping center occupancy, NOI up in 2017

U.S. shopping center total operating income rose by 2.6 percent last year over 2016, reports ICSC Research, citing data from the National Council of Real Estate Investment Fiduciaries (NCREIF). Net operating income (NOI) — which took into account a 3.8 percent increase in operating expenses last year — rose by 2.1 percent.

Occupancy rates also remained strong last year, standing at 93.1 percent in the fourth quarter. These NOI and occupancy statistics contradict a narrative of shopping center decline amid frequent media reports about store closures, says Jean Lambert, vice president of ICSC Research.

“Less attention has been focused in the media on the new tenants that have replaced those that have closed,” said Lambert. “These numbers demonstrate that not only are shopping centers attracting new retailers, but they are a strong magnet for food-and-beverage and entertainment tenants and a range of other concepts.”

Nationally, nonretail and non-food-and-beverage tenants occupied 22.4 percent of total shopping center gross leasable area last year, according to CoStar Realty Information Inc., (www.costar.com).

“These numbers demonstrate that not only are shopping centers attracting new retailers, but they are a strong magnet for food-and-beverage and entertainment tenants and a range of other concepts”

Nationally, nonretail and non-food-and-beverage tenants occupied 22.4 percent of total shopping center gross leasable area last year, according to CoStar Realty Information (www.costar.com).

Broken down by shopping center type, NOI in 2017 was up by 13 percent at regional malls, up by 1.8 percent at power centers, up by 1.5 percent at neighborhood centers and up by 1.2 percent at super-regional malls and community centers. In the fourth quarter alone, NOI at regional malls increased by 9.7 percent, and community center NOI growth leaped by 6 percent.

The full report may be viewed here.

By Edmund Mander

Director, Editor-In-Chief/SCT

Related Topics:

  • malls
  • research & studies
  • shopping centers

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