Vacancy = Opportunity

Key Trends

  • The regional vacancy rate decreased to 7.6 percent during the first half of 2016.
  • Larger-tenant volatility continued, but there has been more momentum to backfill vacancies in the last twelve months.
  • Asking rents have increased on the upper range of the regional averages, but no movement on the lower end.
  • Strong investor demand from regional, national, and international buyers resulted in over 4.0 million square feet of center sales.

Shopping center leasing activity was strong during the first two quarters of 2016. Community, Neighborhood, Lifestyle and Power Centers all registered decreases in vacancy. Discount home furnishing and off-price department stores multiplied. There was also an influx of fitness and recreation operators. This ranged from small boutique fitness locations to larger laser tag and trampoline parks.