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The national retail vacancy rate rose to 10 percent in the
second quarter from 9.9 percent in the first quarter, partly due
to new construction that was only partially absorbed by new
leasing, Reis said.
The mall vacancy rate inched up 0.2 percent to 8.1 percent in
the quarter from the earlier quarter due to confirmed closings
of Macy's Inc <M.N> stores, the research firm added.
Macy's has been closing underperforming stores and focusing on
its digital business.
Net absorption, which is measured in terms of available retail
space sold in the market during a certain time period, fell to
421,000 square feet in the quarter from 2 million square feet in
the first quarter, the lowest level since 2011.
"The negative net absorption seen in June may be a harbinger of
things to come in the next few quarters as more store closings
will likely hit the statistics yielding negative net
absorption," Barbara Denham, senior economist at Reis, said.
Asking rents increased 0.4 percent to $20.64 per square foot and
effective rents increased 0.4 percent from the first quarter,
according to the report.
(Reporting by Radhika Rukmangadhan in Bengaluru; Edited by
Martina D'Couto)
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