Owners of shopping centers and malls raised rents for the 12th consecutive quarter, a sign that retail landlords are getting a boost from the slowly improving economy and low level of commercial real-estate construction.
Asking rents at strip centers rose 0.4% in the first quarter from 2013’s fourth quarter, to $19.42 per square foot, the highest level since late 2008, according to data company Reis Inc. At large regional malls, asking rents rose half a percentage point to $40.15 per square foot, also the highest since the end of 2008.
Demand for store space has been growing slowly as the economy has recovered. Some midsize retailers, like Ross Stores Inc. ROST -0.27% and TJX TJX -1.20% Cos., owner of T.J. Maxx and Marshalls stores, have been expanding.
But as the onslaught from Internet shopping intensified, major forces in the industry, including Sears and J.C. Penney, JCP -1.69% have closed locations. Others, such as Wal-Mart WMT +0.10% Stores Inc., Target Corp. TGT +0.94% and Gap Inc., GPS -0.05% introduced smaller-size stores.
Information from The Wall Street Journal
