Rising Retail Rents

Expect retail rents to begin rising toward the end of 2012 due to absorption of available store space in shopping centers and malls, and the dearth of new supply.  Secondary markets and smaller shopping centers typically occupied by non-credit tenants also show signs of improved market fundamentals. According to Co-Star, while asking rents continued to decline in the fourth quarter of 2011, the pace of decline slowed to 1% or less in most markets, as concessions also declined in many areas.  Some retail centers in more dense and affluent areas have already experienced improvement in effective rents.