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Daily Real Estate News  |  October 7, 2010  |   Retail Vacancies at Malls Hit 3-Year Low
Vacancies at malls have declined, hitting 8.8 percent for the first time in three years, according to Reis Inc.’s third quarter report.

Vacancies at strip malls are unchanged at 10.9 percent and that is one reason Reis says the worst isn’t over.

Because the economy continues to be weak, Reis projects the possibility that some large retailers whose leases expire soon will close some outlets, pushing the rate for malls and strip centers back up again.

Asking rents for malls was $38.72 per square foot, unchanged from the second quarter. Asking rent at strip malls was unchanged at $19.07.

"The challenge is that without a significant increase in aggregate demand for the economy as a whole, retail tenants will play a damaging game of musical chairs, abandoning existing leases in older properties for newer properties touting better services,” said Victor Calanog, Reis director of research. "This will keep vacancies from declining significantly over the next 12 months."

Source: Reuters News, Ilaina Jonas (10/07/2010)

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