Regional Retail Market
- The regional vacancy rate increased during the first two quarters of 2018 from 7.6 to 8.4%.
- Developers continue to renovate existing centers to improve access, increase the number of restaurant and entertainment options, and to add a residential component.
- Asking rents and concessions have remained static.
- Investment sales volume continued on a two-year decline.
Multiple store closings by Sears, Kmart, Bon-Ton and Toys ‘r Us, added 2.6 million square feet to the regional shopping center vacancy to date in 2018. Bon-Ton’s demise, combined with the anchor vacancies left by previous rounds of Macy’s, Sears and JCPenney “right-sizing” have had the greatest impact on regional malls. Mall vacancy jumped from 6.8 to 10.1%.