NEW YORK CITY—Asking and effective rents at neighborhood and community centers ticked up modestly during the second quarter, posting quarterly gains of 0.5% and 0.6%, respectively, Reis Inc. said Tuesday. The gain for regional malls was comparable, with asking rents up 0.6% during Q2.
“This is more or less in line with last quarter,” says Ryan Severino, senior economist and director of research at Reis, based in New York City. “While rents continue to claw their way back from the depths of the recession, they still have a long way to go.”
That being said, Severino notes that both neighborhood centers and regional malls alike have posted “the best performance for year-over-year rent growth since 2007, before the downturn.” For higher-end malls in particular, he says, rents have grown faster than for those in the remainder of the subsector “due to far higher demand and far lower vacancy at the high end.” Reis sees the trend persisting in the medium term.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
