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US retail vacancies were flat at 10.2% in the third quarter: Reis

Key Points
  • U.S. retail vacancies remained flat at 10.2 percent in the third quarter, while a number of Sears Holdings and Bon-Ton store closures boosted mall vacancy rates, real estate research firm Reis said in a report.
  • The mall vacancy rate jumped to 9.1 percent in the third quarter, from 8.3 percent a year earlier. The jump in vacancy does not account for a number of owner-occupied Sears and Bon-Ton stores that also closed.
A Bon-Ton store in South Portland, Maine.
Derek Davis | Portland Press Herald | Getty Images

U.S. retail vacancies remained flat at 10.2 percent in the third quarter, while a number of Sears Holdings and Bon-Ton store closures boosted mall vacancy rates, real estate research firm Reis said in a report.

The mall vacancy rate jumped to 9.1 percent in the third quarter, from 8.3 percent a year earlier. The jump in vacancy does not account for a number of owner-occupied Sears and Bon-Ton stores that also closed.

Reis said the retail sector is still correcting and the growth of e-commerce has rendered a number of older retailers obsolete.

Only 28 of 77 metros saw an increase in vacancy in the quarter, according to the report.

"Other retailers have survived only after developing an omni-channel approach to selling that includes an online presence," the real estate research firm said.

Net absorption was 2.3 million square feet in the third quarter, compared with 1.9 million square feet a year earlier.

The national average asking rents, as well as the effective rent rose about 2 percent.

Only 2.3 million square feet of new construction was completed in the quarter, a 27.9 percent drop, according to the report.

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Retail

Toys 'R' Us lenders plan to revive brand

Key Points
  • The bankrupt retailer's debtors aim to open a new Toys 'R' Us and Babies 'R' Us branding company that maintains existing global license agreements and can invest and develop new retail shops.
  • Under the intellectual property auction, the company had planned to sell its assets, including the brand names of Toys 'R' Us, Babies 'R' Us, registry lists, website domains, Geoffrey the Giraffe and other assets.