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Challenging Months Ahead for Shopping Center Owners

Published Tuesday, August 12, 2008

As the number of retail store closings continues to rise, landlords in the retail sector should brace for falling rents and declining occupancy. Property & Portfolio Research expects the final tally of store closings for the year to climb to more than 6,000, compared with 4,600 closings in 2007. As of mid-August, Boston-based PPR reports 5,300 closings. The breadth of the closings has caught the industry off-guard. “The industry believed that you were just going to see the Home Depots of the world, the furniture stores, the ‘Granite counter tops are us’-type retailers get hurt.

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