Mall Vacancy Rate Rises to 12 Year High

New York, NY, April 7, 2008--The vacancy rate at U.S. strip malls rose to the highest level since 1996 in the first quarter of 2008, according to research firm Reis.

In addition, the rate for big malls reached the highest levels since 2002.

"Retailers are grappling with the implications of the housing and job market downturns for consumer activity, with the result that retail sector fundamentals -- occupancy and rent levels -- are being strained by anemic demand for space," Reis Chief Economist Sam Chandan said in a press release.

Strip-mall vacancies rose 0.2 percentage points from the preceding quarter to 7.7 percent.

Space occupied by retailers in the first quarter fell by 1.36 million square feet from the prior quarter.