Store rents rise as construction slows

Store rentsOwners 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

Share this!

Additional Articles

Top master-planned communities for 2024

By AZ Big Media Here are the Top 10 master-planned communities in Arizona, based on public voting for the 2024 edition of Ranking Arizona, the state’s biggest and most comprehensive business opinion poll. Ranking Arizona

Read More »
News Categories

Get Our Twice Weekly Newsletter!

* indicates required

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.