Retailers and Lower Rents

The United States Retail Sector showed signs of stability during the third quarter of 2010, according to information from REIS Inc. and notes from the Journal of Property Management of IREM. With a 10.9% vacancy rate at neighborhood and community centers and a positive net absorption of 300,000 square feet, the market still have opportunities for certain retailers who want to take advantage of lower rents and vacancies resulting from the recession by opening new stores and extending leases at favorable terms, according to data collected by CoStar Group. Mall have shown losses of 13.6% in rent while lifestyle centers showed 12.1%, according also to data collected by CoStar Group. These centers are most likely to be after those retailers businesses, looking for dcicounted rates. Kohls is one of the retailers taking advantage of lower rents to opoen new stores. It opened 30 stores in 2010 (21 in the third quarter) and plans to open 40 new stores in 2011. Many of the new stores will take over vacated space by Lowes and Wal-Mart. Electronic retailer HHGREGG also plans to take advanatage of market conditions opening new stores and his presence and expansion in South Florida is already a reality. Pittsburg based, Dick's Sporting Goods Inc. has similar plans.