Wednesday, November 23, 2011

Retail Space Availability in U.S. to Fall Next Year, CBRE Says

By Brian Louis
Nov. 21 (Bloomberg) --

Summary of article: The number of vacant space in shopping centers (strip malls, pad sites, etc) will decrease next year for the first time in 7 years. This follows strong industrial growth and increased consumer spending.

Important quotes:
Space available for leasing at U.S. local shopping centers will decline next year for the first time since 2005 as a growing economy spurs retailer expansion, commercial-property brokerage CBRE Group Inc. said.

The availability rate, a measure of space being marketed and ready for tenant construction within a year, will fall to 12.4 percent for neighborhood and community shopping centers at the end of 2012. That’s down from a peak of 13.3 percent in the second quarter of this year, according to a forecast from CBRE Econometric
Advisors, a unit of Los Angeles-based CBRE Group.

Purchases at U.S. retailers rose 0.5 percent in October, following a 1.1 percent increase the month before, Commerce Department figures showed last week. Sales at electronics stores climbed the most in two years.

A lack of shopping-center construction will also help landlords rent existing space, according to Abigail Rosenbaum, an economist at CBRE Econometric Advisors in Boston.


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