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Shopping malls are the most empty since 2012, while the US economy was still struggling to recover from the last recession.
The vacancy rate reached 8.6% in the second quarter, compared with 8.4% in the first quarter, as more consumers changed their online purchases, according to data from the company's real estate search
Reis
Inc.
The highest vacancy rate was recorded in the third quarter of 2011, when it reached 9.4%, according to Reis
]. Brick and mortar sales outlets throughout the country. Vacancies in outdoor shopping centers, for example, increased in the last quarter in 55 of the 77 metropolitan areas surveyed by Reis.
The impact is particularly important in shopping centers and other neighborhood and community shopping centers quarter in nine years. About 3.8 million square feet of space were emptied from April to June, bringing the vacancy rate to 10.2 percent, says Reis
. Local governments rely on retailers to create jobs and generate tax revenue. feel the pain. Vacancies also increase the suburban landscape with empty malls, although some homeowners find other uses for space, turning them into gyms, call centers and even churches.
The space was emptied by a steady decline of some of the most iconic trade names.
Stores Bon Ton
Inc.,
Sears Holdings
Corp.
and
J.C. Penney
Co.
are among the big names that have greatly reduced the number of stores in recent years.
The last Toys "R" Us stores closed on Friday after a failed restructuring attempt. In March, when it announced the liquidation of US stores, the company had about 800 stores in the country.
Xander Chou, a 40-year-old resident of Mountain View, California, said he visits Toys "R" Us regularly. when he was growing up, but the store fell behind the competition. Lately, "I only went to the store when I needed an emergency gift for a birthday party or anniversary that I forgot about. to buy, "he explains. According to US Census Bureau data, seasonally adjusted sales increased 9.1% in the previous quarter.
Retail store owners also suffered from the glut of new shopping centers built in recent years. Financial Crisis of 2008. For every inhabitant of the United States, there is 24 square feet of commercial space, far more than the 16 square feet per capita in Canada, 11 square feet and five square feet in the UK
All is not dark in the retail trade. Some well-located shopping malls that cater to more affluent consumers are still experiencing strong tenant demand and rising rents. Reis data showed that shopping center rents rose 0.3% in the second quarter despite the rise in vacancies.
Some retailers recognize that the presence of a brick and mortar reinforces their efforts online. same
Amazon.com
Inc.
started to open stores.
"A store can still reach new buyers," said Tiffany Hogan, Senior Analyst at Kantar Consulting.
Write to Esther Fung at [email protected]
Appeared in the print edition of July 3, 2018 under the title "Vacancy Rates of Shopping Centers at highest level since 2012. "
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