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Wall Street Journal
Link to article:
Malls See Fewer Vacancies
The recent economic stagnation has seen many retailers paring down locations and closing unproductive stores, but recent figures from the third quarter shows less vacant space in America's malls and shopping centers. Besides new and booming companies like H&M, Lululemon Athletica, and TJ Maxx, new tenants include non retail companies such as health care offices and media studios.
Excerpt: "At the Santana Row shopping center in San Jose, Calif., Swedish fashion retailer Hennes & Mauritz AB opened a 28,000-square-foot store during the third quarter in a formers Borders Group Inc. space. Other new arrivals include fashion and accessories seller Kate Spade New York, New Zealand's wool-clothing seller Icebreaker and an outpost of the Veggie Grill restaurant chain. Meanwhile, British luxury retailer Burberry vacated its 5,000-square-foot store there.
Some malls are filling vacancies with tenants other than stores. Greg Maloney, president and CEO of brokerage Jones Lang LaSalle's Americas retail division, said the Bel Air Mall in Mobile, Ala., signed United Healthcare Services Inc. last quarter into a 1,200-square-foot former store, where the company is showcasing its services. Similarly, Myrtle Beach Mall in Myrtle Beach, S.C., recently signed local game show 'Sqrambled Scuares' to film in a 3,700-square-foot former jewelry store.
Even big-box centers, home to many retail chains hardest hit by online sales, are showing signs of a rebound. Big-box centers in the top 54 U.S. markets posted an average vacancy of 6.4% in the third quarter, unchanged from the second quarter and well removed from the measure's recent high of 7.9% in 2009,
according to the CoStar Group, which collects and analyzes commercial
real-estate and economic data."