The economic downturn has presented retailers in the United States with one of the most challenging operating environments they have faced in decades. As of first quarter of 2010, Colliers International reported an overall retail shopping center vacancy rate of 11.0 percent across the markets it tracks. This number is up considerably from January 2008, when the rate was 7.4 percent. While vacancy has increased for every retail shopping center type in virtually every U.S. market, occupancy losses for big box retail buildings have been especially pronounced.
According to The Big Box Dilemma, a new White Paper from Colliers International, nearly one-third of the nation’s top 500 retailers have increased their growth plans for 2011 and beyond. Though most backfilling of vacant big boxes has been driven by discounters, there is reason to believe that deal activity will continue to increase.
Between January and May of 2010, nearly one-third of those retailers increased their growth plans for 2011 and beyond. Strong store sales until May of 2010 likely played a factor in retailers becoming more bullish on 2011.
The Big Box Dilemma is the first of a two-part White Paper series from Colliers International.
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