Written by Elaine Misonzhnij National Real Estate Investor, May31, 2013
Leasing activity may be experiencing a renaissance if retail landlords are to be believed, but it’s still taking a while for property fundamentals to return to historically healthy levels.
One only has to look at retail REITs’ recent performance to see that the market has taken a turn for the better. For instance, mall operator Simon Property Group reported a 110 basis point increase in portfolio occupancy from the first quarter of 2012 to the first quarter of 2013, to 94.7 percent. Base minimum rent per sq. ft. went up 3 percent, to $41.05.
Shopping center operator Kimco Realty Corp. reported that pro-rate occupancy within its portfolio rose 70 basis points during the same period, to 93.6 percent.
During the first quarter of 2013, the average vacancy rate at all neighborhood and community shopping centers declined by 30 basis points compared to the same period in 2012, to 10.6 percent, according to Reis Inc., a New York City-based research firm. Effective rents rose 0.7 percent year-over-year, to $19.13 per sq. ft.
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Chris Shaheen is a graduate of Louisiana State University where he obtained a Bachelor of Science in Business Management. Shaheen obtained the Louisiana Real Estate Sales License in 1995 where he began work as a consultant with Saurage Company Inc. and remains today as a specialist in development, land valuation, and financing with Saurage Rotenberg Commercial Real Estate, LLC
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).