Shifts in Consumer Demand Inspire New Retail Uses
The third quarter of 2017 returned a negative 153,000 square feet of absorption in the multi-tenant market, bringing the overall vacancy rate to 6.4%. This is an increase from last quarter when the vacancy rate was 6.2%. Year-to-date, the retail market is at negative 66,000 square feet of absorption.
The five largest changes in vacancy this quarter were the result of closures and counted as negative in our total market statistics. Gordmans closed two stores, the 66,000-square-foot Roseville location and the 45,000-square-foot Coon Rapids location. Additionally affecting multi-tenant vacancy was the closure several Gander Mountain stores.
The largest change in quarter three was the closing of JC Penny in Southdale Mall. A portion of the vacated space has already been signed by Lifetime Fitness. During construction, the space will be counted as vacant. The largest positive absorption was Hobby Lobby who occupied 52,000 square feet in Burnhill Plaza in Burnsville.