Vacancies at US shopping centres have hit the highest level in eight years as the ecommerce revolution and recent collapse of debt-laden private equity-backed chains begin to ripple through the commercial property market.
In the latest sign that stress is developing in bricks and mortar retail, new figures from data provider Reis, an arm of Moody’s Analytics, show that 9.3% of units in shopping malls lay empty at the end March – a 10th more than a year ago.
Until recently, the robust US economy has helped the retail property market remain resilient despite the rise of online shopping. Landlords are still demanding 8% higher rents in regional malls than they were five years ago.
