Categorized | Residential

Retails Vacancies Increasing Despite Nearing Holiday Season

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The holiday season is generally the best time of year for retailers, as many see their biggest profits of the year. However, the holiday season is expected to be far different this year in malls around the country.

Many major retailers have closed up shop entirely this year, while others have closed hundreds of stores around the nation. The result of these closures has been an increasing vacancy rate in retail space across the country. In fact, shopping mall vacancies hit an all-time high during the third quarter of the fiscal year.

Retail vacancies are up roughly nine percent in the past year. Despite the declining figures, some retail analysts remain overly positive about the state of the retail market, particularly in shopping malls. Part of their overall positive outlook is the fact that the tenants that still currently make-up the majority of most malls are performing up to expectations. Furthermore, many of the higher-end malls do not have nearly the number of vacancies as lower-end malls. As such, the numbers may be slightly skewed.

Other analysts, however, are not so positive about the state of retail shopping malls. They cite the fact that many malls are filling vacancies with non-traditional businesses and seasonal stores. Many of those stores are able to secure rents at far cheaper rates than traditional retail stores, and thus, the vacancy rates in some malls are inaccurate, or at the very least, deceiving.

Some retailers are benefitting from the current situation. There are a variety of stores that are continuing to increase their presence in shopping malls across the United States, and depressed rental rates are definitely benefitting their situation.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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