Chattanooga-based shopping center operator CBL Properties is stepping up the redevelopment of its huge expanse of retail space as the company helps redefine the American mall.
“Our strategy has evolved,” says CBL Chief Executive Officer Stephen Lebovitz. “Redevelopment is our primary growth strategy.”
Cars sit in the parking lot of Hamilton Place Mall in Chattanooga, Tenn., in this July 24, 2017, staff file photo.RETAIL SHAKE-UP
Among the national findings of a new report by real estate researcher Reis Inc.:* Vacancy rates at malls were 8.6 percent in the second quarter* Open-air shopping center vacancies grew in the second quarter in 55 of 77 metros studied* About 3.8 million square feet of retail space in neighborhood and community malls emptied from April to June, pushing the vacancy rate for this type of mall to 10.2 percent* Some well-located malls which attract more affluent shoppers are seeing tenant demand and rent growth. Mall rents grew 0.3 percent in the second quarter despite rising vacancies.
CBL and Associates CEO Stephen Lebovitz, right, stands with company president Michael Lebovitz in the corporate headquarters adjacent to Hamilton Place mall.Across the country, the vacancy rate at all malls hit 8.6 percent in the second quarter, up from 8.4 percent in the first quarter, according to real estate research firm Reis Inc. Bricks-and-mortar stores continue to feel the pinch of online shopping as buyers make more purchases with computer clicks instead of their feet.
Vacancies in open-air shopping centers grew in the last quarter in 55 of the 77 metro areas studied by the Reis firm.