1. Shopper & Customer

Retail Vacancy Rate Hits 15-Year Low

Retail Vacancy Rate Hits 15-Year Low

Retail vacancies in the United States dropped to 6.1% in the second quarter, a 15-year low, as Americans continued to resume in-store shopping.

Asking rents for shopping center spaces during the quarter were 16% higher than five years ago, The Wall Street Journal (WSJ) reported Tuesday (Oct. 4), citing figures from commercial real estate broker Cushman & Wakefield.

Meanwhile, findings by Morgan Stanley showed more stores opening than closing in the U.S. in 2021 for the first time in 26 years, according to the report. This is a trend some analysts expect to continue even with a recession looming.

Years of retailer bankruptcies and decreased demand for enclosed malls have led to a downturn in new retail construction and increased emphasis on integrating online and offline shopping.

Research by PYMNTS has found that consumers still enjoy many of the online features that bloomed in popularity during the pandemic — including curbside pickup and buy online, pick up in-store (BOPIS) — even as they return to in-store shopping.

Read more: Curbside and in-Store Pickup Rewrite Rules for Shopping, Payments

The 2022 Global Digital Shopping Playbook: U.S. Edition,” a collaboration between PYMNTS and Cybersource, found that 11% of American consumers who purchased online received their most recent eCommerce purchases at curbside, while 47% of consumers who used BOPIS bought additional item while at the store.

Meanwhile, the WSJ report also pointed to the continuing popularity of high-end malls, owned by companies such as Brookfield and Simon Property Group.

See more: Simon Property Q2 Results Show Consumers, Retailers Still Love Going to the Mall

“Our business is strong,” Simon Property Group CEO David Simon said on the company’s earnings call in August.

Those earnings showed that occupancy rose to 93.9%, tenant terminations were at a record low, and retailer sales rose to a record $746 per square foot for Simon’s malls and outlets.

“The higher income consumer is in good shape,” Simon said at the time. “Brick-and-mortar stores are where shoppers want to be, and they’re outpacing eCommerce across the world and the broader retail spectrum, and demand for our space is extremely strong.”

For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.

View Original Article
Do you like Pymnts.com's articles? Follow on social!