By Kris Hudson | The Wall Street Journal
Shopping-center vacancies held steady in the second quarter and average rents inched higher as retail landlords continued to benefit from a dearth of new construction, keeping competition for tenants to a minimum.
Meanwhile, many storefronts vacated by retailers that failed in the downturn and its aftermath gradually have been backfilled with a range of upstart retailers, including fast-casual eateries and alternative grocers.
Average vacancy at malls in the top 77 U.S. markets measured 7.9% in the second quarter, unchanged from the first quarter and well less than the recent high of 9.4% set in the third quarter of 2011, according to data set to be released Tuesday by real-estate research firm Reis Inc.
The situation is similar for strip centers, which are rows of shops facing a common parking lot and often anchored by a grocery store. Average vacancy at U.S. strip centers registered 10.1% in the second quarter, unchanged from the first quarter, according to Reis. Strip-center vacancies have slowly receded since hitting a peak of 11.1% in the third quarter of 2011.
