US retail real estate sees vacancy drop as demand defies e-commerce fears

nzherald.co.nz

Vacancies at open-air shopping centers in the U.S. have fallen to 6.2%, the lowest level since 2006. This trend contradicts earlier predictions of a retail apocalypse due to the rise of e-commerce. Landlords are now able to increase rents as leases expire, benefiting from strong demand. In contrast, enclosed shopping malls are experiencing rising vacancy rates. Higher interest rates and construction costs have limited new development in the retail sector. Analysts note that the current market conditions challenge previous beliefs about the future of retail real estate.


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