In this brief video, Reis Chief Economist & VP of Research Victor Calanog provides an assessment of second quarter 2017 retail property sector trends. Highlights of this video include:
- Fundamentals in retail sector reflect all the negative news
- Neighborhood and community center vacancies increases 10 basis points to 10%
- Regional malls had a 20 basis point increase in vacancies to 8.1%
- Rents grew slowly in neighborhood and community centers and in regional malls, both about 0.4% in the quarter
- Neighborhood and community centers experienced paltry, 1.8% and 1.7% year over year increase in asking and effective rents, respectively
- Retailers are still figuring out omni-channel strategies
- News only highlights the negatives, missing winners like Apple Stores, etc.
- Online sales are nonetheless taking a bigger share of retail sales
- Rising vacancies projected next year or two, as well as continued slow rent growth