This will be much bigger than the subprime mortgage crisis:
– Gerald Celente: The Collapse of 2009; The Greatest Depression
– Mass Retail Closings: About 220,000 stores may close this year
Vacancy rates at strip malls, neighborhood markets and community centers accelerate as retailers confront spending slump, industry report says.
NEW YORK (CNNMoney.com) — Strip malls, neighborhood centers and regional malls are losing stores at the fastest pace in at least a decade, as a spending slump forces retailers to trim down to stay afloat, according to a real estate industry report.
The consequence for consumers: Fewer stores to shop and less product choice.
In just the first quarter of 2009, retail tenants at these centers have vacated 8.7 million square feet of commercial space, according to the latest report from New York-based real estate research firm Reis.
That number exceeds the 8.6 million square feet of retail space that was vacated in all of 2008.
Reis’ report shows that store vacancy rates at malls rose 9.5% in the first quarter, outpacing the 8.9% vacancy rate registered in all of 2008, and marking the largest single-quarter jump in vacancies since Reis began publishing quarterly figures in 1999.
“These record numbers are symptomatic of the pervasive weakness that we’re seeing across economic sectors,” said Victor Calanog, director of research with Reis.
“Consumers are worried about their asset bases and they aren’t buying things,” he said. “Their home values and retirement accounts are still reeling, and consumers remain concerned about future income as job losses accelerate.”