Friday, July 29, 2016

Retail Demand for Space Holds, Despite Sales Slowdowns in Stores and Restaurants

Dunkin DonutsWhen news of sluggish sales hits the retail real estate sector, department stores and apparel retailers emerge as the usual suspects for waning demand for space. Restaurants are usually seen as alternative anchors that can occupy vacant anchor spaces, drive shopper traffic and help malls maintain healthy leasing levels.

That picture is becoming more complicated. Restaurants have experienced weaker foot traffic and sales for about six quarters, according to RBC Capital Markets. Restaurant spending increased by about 6.25 percent by the end of the first quarter of 2016, but that was down from a spending increase of 8.0 percent in the second quarter of 2015.. . . more

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