Vacancy Rate at Strip Malls Expected to Top Record High This Year
ATLANTA, GA, Mar. 1, 2011 – The retail segment of commercial real estate has not yet hit bottom, and when the recovery does start, it is going to be slow, according to Victor Calanog (top right photo), director of research at Reis.
The vacancy rate at strip malls ended 2010 at 10.9 percent, and Calanog said he fully expects this year it will surpass the all-time record of 11.1 percent, set in 1990.
Calanog made his comments while a guest on the “Commercial Real Estate Show,” a radio show hosted by Michael Bull (middle left photo) on Biz 1190 WAFS in Atlanta and available to a national audience via download (hotlink) at www. CRE.com.
.Calanog said retail woes are tightly linked to home ownership. Many retail centers were developed to service new subdivisions. Too many homes now are in foreclosure, sitting empty or underwater, leaving their owners without discretionary income to go shopping.
Retail is not going to see a significant recovery until job growth and consumer confidence improve meaningfully, he said.
“We are going to be hugging the bottom for quite a while,” he said. “It is not going to be a V-shaped recovery.”
The next “Commercial Real Estate Show” which will air March 5 will focus on the restaurant industry. Guests will include Harold Shumacher from The Shumacher Group; Marianna McCabe with Chick-fil-A; and Pierre Panos, founder of Fresh to Order (f2o) and Brookwood Grill.
Contact: Midd Read, mread@wilbertnewsstrategies.com
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