Mall Vacancies At Highest In 11 Years; Strip Malls Vacancy Rate Highest Since 1990

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Fri, 04/08/2011 - 13:10 | 1150467 Ahmeexnal
Ahmeexnal's picture

And educational institutions are next to break.

Fri, 04/08/2011 - 14:19 | 1150736 carbonmutant
carbonmutant's picture

Not before they price themselves out of the market.

Everybody is raising prices to make up the difference...

Fri, 04/08/2011 - 15:54 | 1151127 MachoMan
MachoMan's picture

The local university with ~25k students is expected to get an influx of 5k chinese students within the next two years.  Priced out to americans maybe...

Fri, 04/08/2011 - 16:00 | 1151139 sethstorm
sethstorm's picture

Not if subsidies are taken into account.

 

Fri, 04/08/2011 - 21:24 | 1152339 MachoMan
MachoMan's picture

yeah, we have a lottery...  I'm pretty sure if you're incredibly downsy and slept through highschool or were truant is about the only ways you don't get a chunk.

Fri, 04/08/2011 - 13:11 | 1150469 firstdivision
firstdivision's picture

So we should expect REIT's to surge by 50% on this news.  QE3 is the Fed buying up all empty retail space and fill it with loller-dollars.

Fri, 04/08/2011 - 13:14 | 1150483 Vandelay
Vandelay's picture

Yes, we are already planning MARP, Mall Asset Recovery Plan, funded by the taxpayer for the Banksters.

 

Fri, 04/08/2011 - 13:20 | 1150514 camaro68ss
camaro68ss's picture

This news should be a 2% DOW booster

Fri, 04/08/2011 - 13:27 | 1150527 Temporalist
Temporalist's picture

That is a silly plan...they will instead give people iPads and Zynga dollars (zcoins) so they can buy Facebook apps and plant virtual farms that they can pretend to eat with.

Fri, 04/08/2011 - 13:42 | 1150588 Milton Waddams
Milton Waddams's picture

MARP II to consist of employing people to walk around malls carrying shopping bags to create the impression that consumption is occurring.  "Innovative" program to be accompanied by a Fed research paper on methods to influence herd-like behavior and its positive shock to consumer demand.

MARP III to consist of parking unsold GM cars in mall parking lots to create the illusion of mall traffic.  Facility to be accompanied by a Fed research paper touching on innovations in analysts reasearch methods; specifically the use of near real time satellite feeds to gauge mall traffic and why falsifying said traffic provides a benefit to demand for common stocks and therefore the wealth effect.

Fri, 04/08/2011 - 13:47 | 1150602 silvertrain
silvertrain's picture

That would have an effect if not for people not having money/job/ or even credit..The only ones that are buying anything are the squatters that are not paying there morgage..

Fri, 04/08/2011 - 13:49 | 1150607 DonnieD
DonnieD's picture

The USDA will buy all of the vacant storefronts and put in SNAP retail outlets to handout food stamps. The economic impact will be immeasurable. It will add at least 1% to GDP.

Fri, 04/08/2011 - 14:11 | 1150701 Don Birnam
Don Birnam's picture

+1

Indeed, move the entire SNAP kit and kaboodle under the Fed umbrella. Voila ! Another "off-budget" item thus producing prodigious cost savings, about which the Congressional and White House budgeteers can boast.

http://www.oregonfarmersmarkets.org/EBT/images/decal.jpg  

Fri, 04/08/2011 - 13:59 | 1150663 Ruffcut
Ruffcut's picture

Who do ya know can start up some retail biz in a strip mall. The only thing with growth potential is payday advance outlets.

Or, the new franchise of Ruffcut's Pawn and Porn Shop.

Fri, 04/08/2011 - 13:17 | 1150496 chet
chet's picture

The REITS have been divorced from fundamentals for a long time.  I think they have so much money, and their shareholders don't understand real estate valuation, so they can just keep buying up properties.

 

Howard Davidowitz is hilarious.  He's great on TV or radio.

Fri, 04/08/2011 - 13:10 | 1150470 tj3
tj3's picture

apartment rents UP...commercial (non-high end) down?

Fri, 04/08/2011 - 13:32 | 1150536 Temporalist
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After Months of Growth, Signs of Weakness in the Manhattan Real Estate Market

http://www.nytimes.com/2011/04/01/realestate/01realestate.html

 

"After more than a year of slow but steady growth, the Manhattan real estate market saw declines in price and sales volume in the first three months of 2011, raising the question of whether the city may finally be following the rest of the nation into a double dip in housing prices."

Fri, 04/08/2011 - 13:11 | 1150478 the not so migh...
the not so mighty maximiza's picture

rally time on this news

Fri, 04/08/2011 - 13:14 | 1150492 mt paul
mt paul's picture

mmmmm.. strip malls 

and

consumer lap dances...

Fri, 04/08/2011 - 13:15 | 1150494 JimBobOMG
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We are getting more tolerant to the drug. Lets see if we can get through the withdrawals.

Fri, 04/08/2011 - 13:16 | 1150502 long juan silver
long juan silver's picture

The end of mall culture couldn't come soon enough.

Fri, 04/08/2011 - 13:51 | 1150627 glenlloyd
glenlloyd's picture

ditto on that!

Fri, 04/08/2011 - 13:22 | 1150513 Dick Darlington
Dick Darlington's picture

This is a clear sign of the self-sustaining GLOBAL recovery. Just like the high priest of the Euro-Ponzi, mr Rehn, told us today, again, that the European "recovery" is self-sustaining. Well duh, all the signs of that are there for everyone to see: countries going bankrupt.

Fri, 04/08/2011 - 14:06 | 1150677 Ruffcut
Ruffcut's picture

The recovery is non existent.

IF all of doomers died, the outlook of doom would be the only thing that is self-sustaining.

Sat, 04/09/2011 - 12:56 | 1153355 TheMerryPrankster
TheMerryPrankster's picture

a bit off topic, but Dick Darlington, have you ever been to a bar in Australia named "Susan's"?

Fri, 04/08/2011 - 13:24 | 1150521 Seasmoke
Seasmoke's picture

families should start renting this space.......put a dividing wall in, sell some shit in front and live in the back

Fri, 04/08/2011 - 13:30 | 1150532 hedgeless_horseman
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In the back, behind the dividing wall, is where the real money is made.

Fri, 04/08/2011 - 13:39 | 1150561 AN0NYM0US
AN0NYM0US's picture

I think that would be the norm for industrious immigrants; have you ever purchased a gallon of milk from that little store at the corner? 

Annyong hashimnikka

Fri, 04/08/2011 - 16:04 | 1151168 MachoMan
MachoMan's picture

This is exactly what is going to happen with CRE...  it's going to be converted to either mixed or residential use.  All of the "business" that used to be conducted by the properties will have left us for the forseeable future.

Fri, 04/08/2011 - 13:29 | 1150530 Seasmoke
Seasmoke's picture

Other than the Apple Store , i never see anyone in any of the other stores in the Mall near me , let alone spending any money.....must say it looks like a cool place to hang out all day and kill a day cheaply

Fri, 04/08/2011 - 13:34 | 1150542 flattrader
flattrader's picture

What do you sell?  When you have customers...

Fri, 04/08/2011 - 13:33 | 1150545 Temporalist
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And the funny thing about the Apple store is that most people waiting in line are there for repairs not to buy something.  I think it strange that most people hate waiting in lines but Apple fans love it for some reason.

Fri, 04/08/2011 - 13:31 | 1150533 williambanzai7
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Is it a tsunami of retail bunrupcies or rare but notable exceptions?

Fri, 04/08/2011 - 13:34 | 1150539 A Man without Q...
A Man without Qualities's picture

it depends what you're smoking...

Fri, 04/08/2011 - 13:35 | 1150546 John Self
John Self's picture

I was just noticing the severity of this issue.  I live in the DC area, which has (until the gvt. shutdown) fared quite well during the recession, relatively speaking.  But I recently drove through Tysons Corner, which is among the more upscale shopping areas and is near several very affluent suburbs.  It's a bit shocking if you look closely.  Two empty big boxes where Circuit City used to be.  One entire building vacated by Borders and Filene's Basement.  A building that has housed 3 separate furniture retailers in the past year, and another one that has housed 2 other furniture stores in the past 2 years across the street.  A closed Bed Bath and Beyond, a closed Tower Records.  A few of the medium-rise office buildings appear to have no tenants.  And that's not even getting into the 2 malls, which are full of boarded-up spaces.

Notably, though, there is still al ot of activity in the area (for now, anyway).  That's because several government contractors have office buildings and construction is underway on extending the Metro through the area.  Without the government, it would be approaching a ghost town.  If this is what it's like in an upscale district of a city that has weathered the downturn well, I can only imagine what strip malls in Arizona and Nevada look like.

Fri, 04/08/2011 - 13:43 | 1150590 earnulf
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Recently complete a swing through the SW (Albequerque, Flagstaff, Phoenix) and despite fairly steady traffic throughout, the malls we passed did not seem to be all that busy.    I just chalked it up to lower population density, but now on second thought one has to wonder if the downturn is not impacting these areas as well.    College towns like Flagstaff may be able to better weather the changes, but some of the smaller cities without may be hurting significantly.

Fri, 04/08/2011 - 14:38 | 1150812 TruthInSunshine
TruthInSunshine's picture

If you want to see brand new ghostmalls and industrial complexes and office buildings (NEW), you don't have to go to China.

Go to Glendale, Casa Grande, Marana or Queen Creek.

Sat, 04/09/2011 - 13:01 | 1153371 TheMerryPrankster
TheMerryPrankster's picture

Or try the Inland Empire of Southern California. Ontario airport practically has tumbleweed blowing on the tarmacs, most of the gates are shuttered. There are literally blocks of brand new (never occupied) retail and light industrial, strip malls and business parks that have no occupants and big "for lease" signs near the street. Blocks of them.

There 's a homeless camp about 4 blocks from the airport.

Thank God for the economic recovery, I don't know what things would be like if we were still in a recession(sarcasm).

Fri, 04/08/2011 - 17:45 | 1151698 leilaniyoza@gma...
leilaniyoza@gmail.com's picture

in Arizona?  i've never seen so much empty space in my 25+ years of living here.  what is really glaring to me is that even Scottsdale wasn't recession proof.

Fri, 04/08/2011 - 13:37 | 1150560 Monday1929
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This was unforeseeable.

Fri, 04/08/2011 - 13:39 | 1150563 The Axe
The Axe's picture

They suspended  FASB mark--to - mark rules anyway, so NO one has to take a markdown to net capital ever.....so who cares..

Fri, 04/08/2011 - 13:37 | 1150566 NotApplicable
NotApplicable's picture

I haven't been to a mall in years. Then again, I only manage to make it into Wally World about once a year (last minute Christmas items, and stuff I couldn't find elsewhere), so I'm kind of ahead of the curve on the whole deconsumption thing.

As for durable consumer goods, we buy almost everything from craigslist, et al.

Fri, 04/08/2011 - 13:40 | 1150579 Good To Great
Good To Great's picture

This is inflationary, right?

Fri, 04/08/2011 - 13:42 | 1150581 drink or die
drink or die's picture

People buy things at malls?  Why would I pay 2-3x the price for something when I can have it delivered to my door without having to deal with hoardes of mouth breathers and their brat kids?

Fri, 04/08/2011 - 13:46 | 1150605 TroyPDX
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Last time I went to a mall I swore it would indeed be my last time... surrounded by shambling, vacant eyed hordes of obese suburbanites clutching their five minutes of happiness in Saks bags. It made me want to off myself.

Fri, 04/08/2011 - 13:50 | 1150617 Bam_Man
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Because you enjoy competing with them for parking spaces while burning $4.00/gallon gas?

Fri, 04/08/2011 - 13:51 | 1150630 spank-of-america
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Not once that online sales tax gets passed.

 

Fri, 04/08/2011 - 14:34 | 1150791 andybev01
andybev01's picture

Those shuffling hoards are where the zombie apocalypse virus is germinating.

Stay far away from them or you will be infected.

Fri, 04/08/2011 - 13:43 | 1150585 bank guy in Brussels
bank guy in Brussels's picture

Quite a few haunting videos of 'dead malls' on YouTube:

http://www.youtube.com/results?search_query=dead+mall&aq=0

Yes, that's North America, shopping malls ... here we have few malls, and are still walking to local markets with a shopping cart on two wheels ... some of the men here use a cart with a wooden platform on the bottom to hold a case of bottled beer.

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