Shopping Centers Today

OCT 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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10 S C T / O C T O B E R 2 0 1 8 T H E C O M M O N A R E A P R O P E R T Y M A N AG E M E N T U .S. shopping centers turned in a robust performance in the second quarter, with occupan- cy holding at about 93 percent and net operating income and base rents rising by roughly 2 percent from the year-ago quarter, according to ICSC Research, citing data from the Nation- al Council of Real Estate Investment Fiduciaries (NCREIF). -is marks the 26th consecutive quarterƒof year-over-year growth for NOI and rents at retail centers. "While these numbers re‡ect a strong economy, they also show the healthy state of physical retail," said Jean Lambert, vice president of ICSC Research. "Despite the hype about online shopping, landlords and re- tailers are successfully attracting and engaging customers." Open-air centers (aggregating neighborhood, community and power centers) did particularly well, with NOI there reaching $4.19 per square foot in the second quarter, up byƒ2.9 percent over the comparableƒ2017 quarter. Base rents rose to $4.47 per square foot, a 1.5 percent increase over second-quarter 2017. On the mall side, rents rose by 2.2 percent from the year-ago quarter, and occupancy was at 92.2 percent. NOI, meanwhile, slipped by less than 1 percent,ƒfrom $8.13 per square footƒto $7.91 per square foot. Q HEALTHY FUNDAMENTALS Rents and NOI are up at U.S. centers, and occupancy is steady By Edmund Mander Second-quarter performance MALLS OPEN-AIR CENTERS Base rent psf $7.15 $4.47 NOI psf $7.91 $4.19 Occupancy rate 92.2% 93% Source: NCREIF

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