American retail mall vacancies stand still in the first quarter

American retail mall vacancies stand still in the first quarter

American retail mall vacancies were intact, sticking to 9.9% during the first quarter of 2017, compared with the fourth quarter of the previous year, as new construction dipped to its lowest values in six years, as real estate research company Reis Inc revealed in its report.

Expectations for the retail real estate industry have dropped because of the rapid ascend in e-commerce as well as store closures. However the entire impact of the closures hasn’t been felt yet, as Denham stressed.

Construction activity went down by more than two-thirds during the quarter, with a paltry 796,000 square feet of fresh construction completed.

Asking rent soared 0.3%, while effective rent added 0.4%, as Reis told.

Net absorption, assessed in terms of available retail space sold in the market for a certain period, more than halved, hitting 1.25 million square feet.

Besides this, the national vacancy rate for neighborhood as well as community shopping centers stood still at 9.9%. 



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