Don’t Discount Retail: 4 Reasons Bricks-and-Mortar Remains Strong

escalator-711793_640It’s easy to write-off the future of retail properties based on a few headlines spelling out the demise of some major U.S. retailers. The closing of big-box stores such as Sears or the bankruptcies of major brands such as Radio Shack get plenty of attention.

The truth, however, shows bricks-and-mortar retail shopping centers, mixed-use developments and stand-alone out parcels in many cases to be in fine condition. Lenders and investors are eager to finance and own these properties as consumers return to shopping, fueled by job and wage growth. Read more

Nationwide, Retailers are Pulling Out of Shopping Centers

11788630744_1faaf5f939According to Bloomberg, shopping centers across the country are still struggling to fill empty store fronts from retailers who went out of business years ago.

Reis, a company which has analyzed the CRE industry for over 30 years, says that over the last year, vacancies at U.S. regional malls rose from 7.9% to 8% in the fourth quarter. This is due in part to Sears Holdings Corp. store closures. Unfortunately, as more and more national retailers (i.e., RadioShack, J.C. Penny Co., Borders, etc.) close stores, the real estate recovery for neighborhood and community shopping centers will remain extremely slow.
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