Shopping Centers Today

APR 2018

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

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attracting new retailers, but they are a strong magnet for food-and-beverage and entertainment tenants and a range of other concepts." Nationally, nonretail and non-food- and-beverage tenants occupied 22.4 percent of total shopping center gross leasable area last year, according to CoStar Realty Information. Broken down by shopping center type, NOI in 2017 was up by 13 percent at regional malls, up by 1.8 percent at power centers, up by 1.5 percent at neighborhood centers and up by 1.2 percent at super-regional malls and community centers. In the fourth quarter alone, NOI at regional malls increased by 9.7 percent, and community center NOI growth leaped by 6 percent. n U .S. shopping center total operat- ing income rose by 2.6 percent last year over 2016, reports ICSC Research, citing data from the National Council of Real Estate Investment Fiduciaries (NCREIF). Net operating income (NOI) — which took into account a 3.8 percent increase in operating expenses last year — rose by 2.1 percent. Occupancy rates also remained strong last year, standing at 93.1 per- cent in the fourth quarter. These NOI and occupancy statistics contradict a narrative of shopping center decline amid frequent media reports about store closures, says Jean Lambert, vice president of ICSC Research. "Less attention has been focused in the media on the new tenants that have replaced those that have closed," said Lambert. "These numbers demonstrate that not only are shopping centers WHAT APOCALYPSE? Shopping center occupancy and NOI rose in 2017 By Edmund Mander 14 S C T / A P R I L 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 YEAR ON YEAR PERCENT CHANGE 12% 10 8 6 2 0 -2 -4 -6 -8 U.S. shopping center NOI 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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