The US outdoor shopping center market recorded its largest return of space since 2009 during the second quarter of 2020, with 12.2 million square feet reabsorbed so far this year according to a new report from Cushman & Wakefield.
The report said despite the -7.7 million square feet absorption during Q2, "the impact on vacancy and rents has thus far been moderate." It noted that overall vacancy rates went up by 20 basis points over the last quarter to hit 6.8 percent, and the overall asking rent for all space classes is at $17.58 per square foot, holding steady from the previous quarter.
The report found that the pandemic is impacting different kinds of properties and commercial retail spaces differently: Power centers—which typically feature big-box stores—as well as strip malls and neighborhood and community centers were the most stable shopping center types. Their vacancies centered around Class B and C spaces, and the report said the higher rents for Class A vacancies "is likely lifting overall asking rents."
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Jacqueline Thomsen
Jacqueline Thomsen, based in Washington, is a reporter covering D.C. federal courts and the legal side of politics. Contact her at [email protected] and follow her on Twitter @jacq_thomsen.
