Researcher pares forecast rent increases, occupancy rates for mall REITs, as more shoppers go online
By Liam Pleven | The Wall Street Journal
As mall owners prepare to report fourth-quarter earnings results, investors already are bracing for a tougher road ahead.
Real-estate researcher Green Street Advisors is lowering its forecasts for the rent that large U.S. mall owners will be able to charge and the amount of space that will be occupied by tenants for years to come.
Rents will grow at a paltry 1.5% annually for existing nonanchor tenants through 2019, Green Street now predicts, down from the 2.5% growth it anticipated a year ago for the same four-year period.