Currently retail properties have low vacancies and Costar suggests developers starting constructing retail properties in good demanding locations. The lack of supply of retail properties means the rents are going to increase and the value of the property is going to rise, until new development is built to offset the demand in the area. Mixed-use retail development projects are also in demand across the U.S. Since the vacancies are low for shopping centers, then developers should consider taking advantage of the opportunity. Building more shopping centers will creates jobs, spur economic growth and bring in more business into the area.
Excerpts from Article: “We think it’s time for developers to put shovels in the ground and build retail in good locations, and with that, we’re going to see another inflection point in the cycle,”
said Suzanne Mulvee, director of U.S. Retail Research for CoStar Portfolio Strategy.”
“Although the national retail vacancy rate was 6.2% in the first quarter and continues to decline, the vacancy rate for “competitive space,” defined by CoStar as shopping centers 60% or more occupied, was 2.7%, the lowest in a decade.”
“The supply balance favors landlords, and that means increasing rent growth,” McCullough said.”
Citation and Link: Drummer, Randyl 6 May. 2015. “Is Shopping Center Market Finally Positioned For New Supply Growth? Costar. 6 May. 2015 http://www.costar.com/News/Article/Is-Shopping-Center-Market-Finally-Positioned-For-New-Supply-Growth-/171334
Picture & Citation: Drummer, Randyl 6 May. 2015. “Is Shopping Center Market Finally Positioned For New Supply Growth” Costar. 6 May 2015. http://www.costar.com/News/Article/Is-Shopping-Center-Market-Finally-Positioned-For-New-Supply-Growth-/171334