US outdoor shopping center vacancies hit lowest level in nearly 20 years as demand rises

Vacancies at outdoor shopping centers in the U.S. have fallen to 6.2%, the lowest level since 2006, challenging predictions of a retail collapse due to e-commerce growth. Landlords are raising rents as demand outpaces supply. Retailers, especially discount chains, are expanding despite the rise of online shopping. Walmart plans to open 150 new locations, while off-price retailers have added 339 stores in the past year. E-commerce sales still represent less than 16% of total U.S. sales. The demand for open-air centers contrasts with the struggles of enclosed malls, where vacancies are increasing. Rents for outdoor spaces have risen significantly, with new leases averaging nearly $18 per square foot, surpassing pre-financial crisis levels.