Reis in the News
By Liz Wolf
Source: National Real Estate Investor – How Many More Store Closures Are Expected in 2019?
Despite headline-making store closings by Sears, Bon-Ton, Kmart, and others over the past few months, U.S. shopping center and mall owners have been working hard to hang on to tenants. However, they are likely gearing up for another challenging year as more store closures are anticipated in 2019.
Research firm Reis Inc. reported that the overall U.S. retail vacancy rate in the fourth quarter of 2018 remained flat at 10.2 percent. The vacancy rate are regional and superregional malls dropped slightly to 9.0 percent from 9.1 percent in the third quarter, which marked a seven-year high.
Given the many store closures across the U.S., the minimal changes in vacancy rates show how the retail sector has withstood the structural changes in the industry, Reis’ report noted.
“Many feared that vacancy rates would soar and rents would plummet. This did not occur as the doomsday prognostications proved to be overblown,” Reis researchers noted.
“The apocalypse is overblown,” says Barbara Denham, a senior economist at Reis.