While rent declines have been relatively modest in CRE, one sector is showing more weakness than others.
Vacancy rates for regional and super-regional malls shot up 90 basis points in a single quarter to hit a record 11.4%, according to Moody's REIS—a significant quarter over quarter increase. One question the broader industry may have is whether CRE performance, after more or less holding up for much of last year, is finally going to show significant signs of erosion.
It is true that cracks began to emerge in many sectors by November, most notably in regional malls. Outside of industrial, vacancies rose in all major property types and rent declines accelerated at both the national level and across most metropolitan areas.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
