Retail properties are still recovering from the last economic downturn. The sector has posted positive net absorption rates three times since the recovery got underway in 2010, while balancing that out with vacancy rates that have dropped steadily. The result: asking and effective rents grew by 2.0 percent and 2.2 percent, respectively, during 2015, according to New York City-based research firm Reis Inc.
The current quarter vacancy rate stands at 10.0 percent for 80 metropolitan U.S. markets, with an average rental rate of $20.09, according to Reis. So far, so good: The question is, can landlords maintain their success for the rest of 2016, especially in a retailing environment where the customer experience is more important than ever? . . . more