Search
 

Vacancy Rates Rising at Regional Centers

MINNEAPOLIS-United Properties' mid-year market report concludes that vacancy rates at regional malls are up to 3.9%. Despite the rising vacancy, rental rates have held steady, according to the report.

By Jim McCartney | Updated on July 18, 2001

MINNEAPOLIS-Twin Cities regional centers have seen their vacancy rates rise as they struggle through major makeovers, according to a mid-year report on the commercial real estate market from United Properties. As the repositioning of major malls in Eden Prairie, Edina, Burnsville and Brooklyn Center continues to be the top story among regional centers, vacancies have sputtered upward from 3.2% at year-end 2000 to 3.9% at mid-year 2001.

With malls repositioning themselves for the future, little new leasing activity occurred to counterbalance attrition, according to United. As a net result, there was negative absorption of 144,594 sf from an overall market totaling about 10.8 million sf. Despite the rising vacancy, rental rates have held steady, according to the report.

Burnsville Center owners announced the largest renovation project for the mall since it opened in 1977. Chattanooga, TN-based CBL & Associates Properties Inc. says the renovation will open the way for a 22,000-sf Old Navy store and eventually Gap Kids and Baby Gap stores. In the process, the mall is eliminating its previously closed movie theater space.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.