Our Mission

Learn who we are and how we serve our community

Leadership

Meet our leaders, trustees and team

ICSC Foundation

Support up-and-coming professionals

ICSC Exchange

Catch up on industry ideas, news and views

Research

Check out wide-ranging resources that educate and inspire

Global Public Policy

Learn about the governmental initiatives we support

Events

Connect with other professionals at a local, regional or national event

Professional Development

Grow your skills online, in a class or at an event with expert guidance

Find Members

Access our Member Directory and connect with colleagues

Find Outlets

Get data and contact information for shopping outlets

Talent HQ

Search and post jobs, upload your resume or find qualified candidates

Become a Member

Learn about how to join ICSC and the benefits of membership

Renew Membership

Stay connected with ICSC and continue to receive membership benefits

Research + Studies

Shopping center rents, income and occupancy rose in 2017

Last year was good for U.S. malls and open-air centers in terms of rents, net operating income and occupancy, according to ICSC Research, based on figures from the National Council of Real Estate Investment Fiduciaries (NCREIF).

Taking together all types of centers — malls and open-air — base rents rose by 2.1 percent in 2017, to $19.56 per square foot. Net operating income (NOI) also rose, by 2.1 percent, to $19.11 per square foot, while the occupancy rate was 93.1 percent.

These numbers are based on a properties sample taken by NCREIF, a Chicago-based provider of investment performance indices and data for U.S. commercial properties.

Base rents at malls increased by 3.9 percent across the U.S. last year, compared with 2016, and NOI was up by 3.8 percent. Mall occupancy essentially held steady, at 93.5 percent, versus 93.6 percent in 2016.

“The numbers tell the true story. Retail real estate continued to perform robustly last year as it successfully embraces change and evolution in the marketplace”

Malls in the Western U.S. saw the highest increases in base rent (up by 8.4 percent) and NOI (up by 7.5 percent) last year, while those in the East ended the year with the highest occupancy rate, at 95.3 percent.

Base rents in open-air centers — a category covering neighborhood, community and power centers — rose by 1.5 percent nationally, and NOI went up by 1.4 percent.

The South had the best-performing open-air centers last year, with rents increasing there by 3.1 percent and NOI rising by 2.4 percent, and occupancy at 93.5 percent.

“The numbers tell the true story,” said Jean Lambert, vice president of ICSC Research. “Retail real estate continued to perform robustly last year as it successfully embraces change and evolution in the marketplace.” 

Additional information is available at ICSC’s QuickStats, where inquirers may browse for shopping center income and expenses in the U.S.

By Edmund Mander

Director, Editor-In-Chief/SCT

Related Topics:

  • malls
  • ncreif
  • noi
  • occupancy
  • open-air centers
  • research

SCT Week

Weekly newsletters like SCT Week put retail real estate news and trends in the palm of your hand.

Sign up now