THE MALL'S DILEMMA: RISING VACANCY RATES AND FLAT PERCENTAGE RENTAL OVERAGESSubmitted by webmaster on Tue, 11/17/2009 - 15:58
Originally published in Shopping Center Business, October 1997
Over the past two years, I have become very much aware of rising vacancy and flat percentage rental overages in major malls. I am not alone. Many insurance companies, REITS. investment trusts, and other shopping center landlords are experiencing the same. The sameness and boring nature of many malls has seen a decline in customer attraction and sales resulting in slipping occupancy. Fortunately, not all are fully affected. Well-located dominant malls with strong department and specialty store tenants generally are experiencing firm rents and mixed percentage rental overages increases. Furthermore, it appears that leasing representatives are working harder and more creatively to keep occupancy levels up.