NNN Lease Market News
U.S. commercial property prices increased in May for the first time in six months as a rebound in distressed real estate helped boost values, according to Moody’s Investors Service.
The Moody’s/REAL Commercial Property Price Index rose 6.3 percent from April, the largest gain since the measure began in 2000. It’s down 11 percent from a year earlier and 46 percent below the peak of October 2007, the company said today.
“A number of transactions that were recorded in May had their most recent prior sales in 2009 as the market was beginning to bottom and subsequently traded for substantial returns,” Tad Philipp, director of commercial real estate research at Moody’s, said in a separate statement. “We are likely to see a pickup in post-peak repeat sales and expect such transactions to play an important role in helping drive the CPPI higher.”
http://www.bloomberg.com/news
Wednesday, July 20, 2011
NNN Lease Medical Buildings for Sale
NNN Lease Medical Office Buildings For Sale – Portfolio
44095 Pipeline Plaza Ashburn, VA
$1,700,000 | CAP Rate 6.50% NOI $110,376
Rent Escalation 3% Annually
Unit Size 5,256 SF
Business Type Medical Practice
Lease Type NNN Condo
Available only as portfolio purchase with at least one additional unit
Offerwise
$750,000 | CAP Rate 8.00% NOI $60,067
Rent Escalation 3% Annually
Unit Size 2,777 SF
Business Type Internet Marketing Strategy
Lease Type NNN Condo
RPL
$1,238,857 | CAP Rate 7.00% NOI $86,720
Rent Escalation 3% Annually
Unit Size 4,336 SF
Business Type Residential Land Development
Lease Type NNN Condo
WebMD
$876,000 | CAP Rate 6.66% NOI $58,370
Rent Escalation 3.00% Annually
Unit Size 2,920 SF
Business Type Health, Internet
Lease Type Full Service
HIGHLIGHTS
•Inova is anchor tenant with new 10-year NNN lease and building signage rights
•Three additional leased condominium units available for purchase
•All leases have 3.00% annual rent increases
•Newly developed Class A professional office built in high growth Ashburn, VA market
For More information Contact:
JERRY BURG
Managing Director
(703) 787-4714
ANDREW FALLON
Associate
(703) 787-4714
WestLB AG Seeks to Sell Loan Portfolio
NNN Lease Market News
Troubled German bank WestLB AG is marketing a portfolio of loans backed by a diverse collection of hotels and resorts that include a ski lodge in Utah, a boutique hotel in lower Manhattan and a beach resort in Miami, according to the offering memorandum.WestLB was among a number of European banks that began lending aggressively to U.S. developers during the final years of the property market boom.
John Fox, a hotel analyst at Colliers PKF Consulting, said WestLB's lending may seem more risky because, unlike some foreign lenders, the German bank provided financing for more speculative resort projects
"Some of the overseas banks got into markets they didn't know as well as the urban markets," he said.
A spokeswoman for WestLB declined to comment. A hotel broker at Jones Lang LaSalle, the firm running the sale, also declined to comment.
http://online.wsj.com/article/
Troubled German bank WestLB AG is marketing a portfolio of loans backed by a diverse collection of hotels and resorts that include a ski lodge in Utah, a boutique hotel in lower Manhattan and a beach resort in Miami, according to the offering memorandum.WestLB was among a number of European banks that began lending aggressively to U.S. developers during the final years of the property market boom.
John Fox, a hotel analyst at Colliers PKF Consulting, said WestLB's lending may seem more risky because, unlike some foreign lenders, the German bank provided financing for more speculative resort projects
"Some of the overseas banks got into markets they didn't know as well as the urban markets," he said.
A spokeswoman for WestLB declined to comment. A hotel broker at Jones Lang LaSalle, the firm running the sale, also declined to comment.
http://online.wsj.com/article/
Tuesday, July 19, 2011
Selling off Federal Property a Simple Way to Raise Money
NNN Lease Market News
Selling off Federal Property a Simple Way to Raise Money in this Market ..
According to officials familiar with the talks, the White House suggested the government could raise $12 billion by selling unneeded federal land, with as much as $5 billion coming from this one Los Angeles property. "Sell it," said Rep. Eric Cantor...
Selling off federal property might seem a simple way to raise money. But in reality, officials say, red tape and the costs of shuttering a building, as well as allaying local concerns, have stymied such efforts in the past.
"While local politicians and leaders love to [preside] over ribbon-cutting ceremonies, getting rid of property can be a much less rewarding experience," said Jeffrey Zients, chief performance officer at the White House Office of Management and Budget.
The Government Accountability Office reported this year that 24 federal agencies own more than 45,000 under-utilized buildings that cost $1.66 billion annually to operate.
The idea of selling properties remains under consideration as part of the deficit package now being negotiated, officials said.
Earlier this year, the White House proposed a new process for selling properties akin to how the government closes military bases. A board would make recommendations to Congress, and several properties would be packaged together and sent to Congress. Then Congress would vote either yes or no to the whole package, making it harder for lawmakers to protect home-state favorites. House Republicans have readied similar legislation.
Some properties marked for sale have little or no value—a supply shed or air-traffic control tower. Others are worth a lot, perhaps none more than the West Los Angeles Medical Center, situated on prime real estate.
http://online.wsj.com/article
Selling off Federal Property a Simple Way to Raise Money in this Market ..
According to officials familiar with the talks, the White House suggested the government could raise $12 billion by selling unneeded federal land, with as much as $5 billion coming from this one Los Angeles property. "Sell it," said Rep. Eric Cantor...
Selling off federal property might seem a simple way to raise money. But in reality, officials say, red tape and the costs of shuttering a building, as well as allaying local concerns, have stymied such efforts in the past.
"While local politicians and leaders love to [preside] over ribbon-cutting ceremonies, getting rid of property can be a much less rewarding experience," said Jeffrey Zients, chief performance officer at the White House Office of Management and Budget.
The Government Accountability Office reported this year that 24 federal agencies own more than 45,000 under-utilized buildings that cost $1.66 billion annually to operate.
The idea of selling properties remains under consideration as part of the deficit package now being negotiated, officials said.
Earlier this year, the White House proposed a new process for selling properties akin to how the government closes military bases. A board would make recommendations to Congress, and several properties would be packaged together and sent to Congress. Then Congress would vote either yes or no to the whole package, making it harder for lawmakers to protect home-state favorites. House Republicans have readied similar legislation.
Some properties marked for sale have little or no value—a supply shed or air-traffic control tower. Others are worth a lot, perhaps none more than the West Los Angeles Medical Center, situated on prime real estate.
http://online.wsj.com/article
U.S. Retailers Shop for Space in European Market
NNN Lease Market News
With U.S. retailers such as Abercrombie & Fitch Co. and Gap Inc. pushing into Europe, analysts are debating a key question: Has there been enough recent development to satisfy this new demand for space?
The weak U.S. economy and worries about jobs have consumers spending less and are causing some of the biggest U.S. retailers to look abroad for growth.
According to new research by property consultants CB Richard Ellis, 1.9 million square meters (20.5 million square feet) of new shopping-center space was built in Europe in 2010, down 36% from the previous year, even after development fell 30% in 2009. Some analysts believe there is still enough supply to satisfy demand.
The outlook is better in some countries than others. According to CBRE, the development pipeline is still "considerably smaller" than in 2007 and 2008 —the most recent peak in shopping-center development. But construction starts are rising in markets such as Turkey, Russia, and Poland. There are 146 shopping centers under construction in Europe today, says CBRE, and the highest level of activity is in Europe's emerging markets.
"The shopping center development market in Turkey has sprung back to life," Neville Moss, CBRE's head of retail research in Europe, the Middle East and Africa, said in a statement.
http://online.wsj.com/article
With U.S. retailers such as Abercrombie & Fitch Co. and Gap Inc. pushing into Europe, analysts are debating a key question: Has there been enough recent development to satisfy this new demand for space?
The weak U.S. economy and worries about jobs have consumers spending less and are causing some of the biggest U.S. retailers to look abroad for growth.
According to new research by property consultants CB Richard Ellis, 1.9 million square meters (20.5 million square feet) of new shopping-center space was built in Europe in 2010, down 36% from the previous year, even after development fell 30% in 2009. Some analysts believe there is still enough supply to satisfy demand.
The outlook is better in some countries than others. According to CBRE, the development pipeline is still "considerably smaller" than in 2007 and 2008 —the most recent peak in shopping-center development. But construction starts are rising in markets such as Turkey, Russia, and Poland. There are 146 shopping centers under construction in Europe today, says CBRE, and the highest level of activity is in Europe's emerging markets.
"The shopping center development market in Turkey has sprung back to life," Neville Moss, CBRE's head of retail research in Europe, the Middle East and Africa, said in a statement.
http://online.wsj.com/article
Thursday, July 14, 2011
Investors are Buying NNN Lease Properties in Primary Markets
NNN Lease Market News
Opportunity Investors are Buying up Semi-Vacant Office Buildings, Retail Centers and Apartments in Primary Markets.
Lenders are more likely to be interested in financing deals in a secondary market if they know that specific market is in recovery mode, says Ryan Krauch, principal at Mesa West Capital, a portfolio lender based in Los Angeles. “We can get very comfortable in markets we believe have come to a low point in their cycle.”
Lenders are more likely to be interested in financing deals in a secondary market if they know that specific market is in recovery mode, says Ryan Krauch, principal at Mesa West Capital, a portfolio lender based in Los Angeles. “We can get very comfortable in markets we believe have come to a low point in their cycle.”
Mesa West has placed approximately $750 million in commercial real estate loans since the third quarter of 2010. In particular, the lender seeks to finance Class-A properties that stand to benefit from local tenants upgrading to higher-quality space.
That was the case earlier this year in Phoenix, where Mesa West provided a $40 million mortgage loan to finance two prominent office buildings known as Anchor Center. “You'll definitely see money flow first to the highest-quality, best-located properties in those secondary markets,” says Krauch.
Investors who buy distressed properties or acquire assets in markets where property values are only beginning to stabilize may have to wait several years before those properties generate income, much less a profit.
Merage of MIG Real Estate says that's a risk he is willing to take because he believes that the economic recovery will eventually usher in steady rental income and healthy property values.
“We're a patient investor, so it comes down to the long-term viability of the marketplace that we're pursuing,” he says. “In a lot of these markets, it's going to be a long time before we see a significant recovery.”
Low interest rates mean leverage is affordable, but it is still challenging to find lenders who will finance deals in secondary and tertiary markets. “Capital is being very selective,” says Ronen of Lucent Capital. “We're reaching out to 50 or 60 different capital sources to find two or three that are willing to finance a deal.”
Lenders may offer higher loan-to-value financing on high-quality assets with partial vacancy, or in a market where property values have bottomed and are poised to appreciate as the economy recovers, says Ronen.
That's because the lender understands that the asset's value and cash flow will likely increase over time, which decreases the relative size of the debt on the appreciating property.
By contrast, prices on core assets in primary markets reflect a maximized income stream, leaving little room for value appreciation after an acquisition.
From a trough in December 2009 to March of this year, prices of non-distressed, trophy properties in primary markets had risen 26.7%, according to Moody's Investors Service. That's based on an index of properties valued at $10 million or more in the largest U.S. markets.
http://www.sacommercialpropnews/
http://www.sacommercialpropnews/
Wednesday, July 13, 2011
Foreign Investors Often Make the Mistake of Looking at U.S. Real Estate as a Safe Haven
NNN Lease Market News
Africa Israel has struck agreements to sell a major piece of the former New York Times headquarters and the landmark Clock Tower building overlooking Madison Square Park in Manhattan, both at steep losses. It also has unloaded numerous parcels of land in Florida.
Africa Israel, headed by diamond-industry billionaire Lev Leviev, is the latest overseas company to run aground in the U.S. commercial market. In the late 1980s, Japanese investors purchased such iconic properties as Rockefeller Center and the Pebble Beach golf resort, only to suffer losses during the early 1990s recession.
Foreign investors often make the mistake of looking at U.S. real estate as a safe haven. "The U.S. market is one of the most transparent, the government is stable and foreigners often invest with a long-term horizon," said Mark Edelstein, head of the real-estate group at law firm Morrison & Foerster LLP. "The problem is they often buy near the top of the market and overpay."
In 1997, Mr. Leviev purchased a controlling interest in Africa Israel, a public property-investment company founded in 1934 by Jewish investors from South Africa. Under his leadership the company expanded into new markets like the Philippines and Russia, where Mr. Leviev developed a friendship with Vladimir Putin, now the country's prime minister. Projects developed by the company's Russian arm include AFIMall City, a giant retail complex in Moscow that opened in May after delays.
During the late stages of the U.S. real-estate boom, Africa Israel began making highly leveraged bets in big cities. Unlike many foreign investors, which tend to buy stabilized properties with solid cash flows, Africa Israel made highly speculative bets, buying up empty tracts of land and trying to convert office buildings to condos. It issued bonds in the Israeli market to finance much of the buying, racking up debt of 7.8 billion shekels by the end of 2009.
Craig Karmin at craig.karmin@wsj.com
Africa Israel has struck agreements to sell a major piece of the former New York Times headquarters and the landmark Clock Tower building overlooking Madison Square Park in Manhattan, both at steep losses. It also has unloaded numerous parcels of land in Florida.
Africa Israel, headed by diamond-industry billionaire Lev Leviev, is the latest overseas company to run aground in the U.S. commercial market. In the late 1980s, Japanese investors purchased such iconic properties as Rockefeller Center and the Pebble Beach golf resort, only to suffer losses during the early 1990s recession.
Foreign investors often make the mistake of looking at U.S. real estate as a safe haven. "The U.S. market is one of the most transparent, the government is stable and foreigners often invest with a long-term horizon," said Mark Edelstein, head of the real-estate group at law firm Morrison & Foerster LLP. "The problem is they often buy near the top of the market and overpay."
In 1997, Mr. Leviev purchased a controlling interest in Africa Israel, a public property-investment company founded in 1934 by Jewish investors from South Africa. Under his leadership the company expanded into new markets like the Philippines and Russia, where Mr. Leviev developed a friendship with Vladimir Putin, now the country's prime minister. Projects developed by the company's Russian arm include AFIMall City, a giant retail complex in Moscow that opened in May after delays.
During the late stages of the U.S. real-estate boom, Africa Israel began making highly leveraged bets in big cities. Unlike many foreign investors, which tend to buy stabilized properties with solid cash flows, Africa Israel made highly speculative bets, buying up empty tracts of land and trying to convert office buildings to condos. It issued bonds in the Israeli market to finance much of the buying, racking up debt of 7.8 billion shekels by the end of 2009.
Craig Karmin at craig.karmin@wsj.com
Tuesday, July 12, 2011
Institutional Investors and Real Estate Investment Trusts Back in the Market in a Big Way
NNN Lease Market News
Institutional Investors and Real Estate Investment Trusts Really Back in the Market
Demand for prime properties is rising as Manhattan office leasing improves and buyers seek to put capital to work. Institutional investors and real estate investment trusts led purchases, making almost two-thirds of deals in the first six months of the year, according to Cushman.
“The institutions and pension funds are really back in the market in a big way,” Joseph Harbert, Cushman’s New York-area chief operating officer, said in a briefing for reporters.
“The smart REIT money got active in the market in ’10, and is still very active. The foreign money as a percentage now is not as active.”
Properties priced at $100 million or more are “selling at a very brisk pace” and driving the market while lower-end sales are more sluggish, according to Robert Knakal, chairman of commercial-property brokerage Massey Knakal Real Estate Services, which also issued a report today on Manhattan sales.
The average deal price for the first half of the year was $13.1 million, higher than the $12.3 million reached at the market’s peak in 2007.The high end is recovering, but otherwise the market is kind of slogging along,” Knakal said. “It is taking longer to gain the traction that we like.”
http://www.bloomberg.com/
Institutional Investors and Real Estate Investment Trusts Really Back in the Market
Demand for prime properties is rising as Manhattan office leasing improves and buyers seek to put capital to work. Institutional investors and real estate investment trusts led purchases, making almost two-thirds of deals in the first six months of the year, according to Cushman.
“The institutions and pension funds are really back in the market in a big way,” Joseph Harbert, Cushman’s New York-area chief operating officer, said in a briefing for reporters.
“The smart REIT money got active in the market in ’10, and is still very active. The foreign money as a percentage now is not as active.”
Properties priced at $100 million or more are “selling at a very brisk pace” and driving the market while lower-end sales are more sluggish, according to Robert Knakal, chairman of commercial-property brokerage Massey Knakal Real Estate Services, which also issued a report today on Manhattan sales.
The average deal price for the first half of the year was $13.1 million, higher than the $12.3 million reached at the market’s peak in 2007.The high end is recovering, but otherwise the market is kind of slogging along,” Knakal said. “It is taking longer to gain the traction that we like.”
http://www.bloomberg.com/
Dunkin’ Brands is Offering 22.3 Million Shares
NNN Lease Market News
Dunkin’ Brands is Offering 22.3 Million Shares for $16 to $18 Each
Taken private in 2006 by Bain Capital LLC, Carlyle Group and Thomas H. Lee Partners LP, Dunkin’ follows private equity- backed companies such as HCA Holdings Inc. and Kinder Morgan Inc. in returning to the public market this year after leveraged buyouts. Private equity owners have completed the biggest U.S. IPOs in 2011 as a rising U.S. stock market increased investors’ demand for companies acquired through debt-fueled acquisitions.
“After the market has done so well, from a timing point of view it’s a good idea to get it done now,” Hugh Johnson, who oversees about $2 billion as chairman of Albany, New York-based Hugh Johnson Advisors LLC, said in an interview. “If I were in the private equity business, I’d be trying to raise liquidity as fast as I could.”
The doughnut chain has more than 16,000 locations in 57 countries under the Dunkin’ Donuts and Baskin-Robbins brands, according to the filing. Bill Rosenberg founded his first restaurant in the 1940s, which was later renamed Dunkin’ Donuts.
The stock will trade on the Nasdaq Stock Market under the ticker symbol DNKN.
Dunkin’s offering is being led by JPMorgan Chase & Co. (JPM), Barclays Plc, Morgan Stanley, Bank of America Corp. and Goldman Sachs Group Inc. (GS)
The company aims to complete the offering by the end of July, two people familiar with the plans said last month. The timing of the IPO is subject to change based on market conditions and demand for the shares.
http://www.bloomberg.com/
Dunkin’ Brands is Offering 22.3 Million Shares for $16 to $18 Each
Taken private in 2006 by Bain Capital LLC, Carlyle Group and Thomas H. Lee Partners LP, Dunkin’ follows private equity- backed companies such as HCA Holdings Inc. and Kinder Morgan Inc. in returning to the public market this year after leveraged buyouts. Private equity owners have completed the biggest U.S. IPOs in 2011 as a rising U.S. stock market increased investors’ demand for companies acquired through debt-fueled acquisitions.
“After the market has done so well, from a timing point of view it’s a good idea to get it done now,” Hugh Johnson, who oversees about $2 billion as chairman of Albany, New York-based Hugh Johnson Advisors LLC, said in an interview. “If I were in the private equity business, I’d be trying to raise liquidity as fast as I could.”
The doughnut chain has more than 16,000 locations in 57 countries under the Dunkin’ Donuts and Baskin-Robbins brands, according to the filing. Bill Rosenberg founded his first restaurant in the 1940s, which was later renamed Dunkin’ Donuts.
The stock will trade on the Nasdaq Stock Market under the ticker symbol DNKN.
Dunkin’s offering is being led by JPMorgan Chase & Co. (JPM), Barclays Plc, Morgan Stanley, Bank of America Corp. and Goldman Sachs Group Inc. (GS)
The company aims to complete the offering by the end of July, two people familiar with the plans said last month. The timing of the IPO is subject to change based on market conditions and demand for the shares.
http://www.bloomberg.com/
Monday, July 11, 2011
Retail Market is Expanding in Georgetown D.C.
NNN Lease Market
Most observers agree, though, that Georgetown's retail market is expanding
Coming debuts include clothier Brooks Brothers, which is opening a 20,000-square-foot store in September, men's store Jack Spade and Williams-Sonoma Inc.'s West Elm furniture division, soon testing the market with a store on a six-month lease.
"Ten years ago, Georgetown was a mom-and-pop market," said Michael Zacharia, a senior vice president in Washington for brokerage C.B. Richard Ellis Group Inc. "Now, we see national brands in the market and luxury brands looking to enter."
The evolution of Georgetown's retail market mirrors others, like Denver's Lower Downtown and Seattle's Capitol Hill, where populations are returning to downtowns for shorter work commutes and smaller homes in renovated buildings and towers. Retailers, in turn, are chasing the higher incomes and density that result from that trend. In some cases, that results in concerns national retailers are displacing local, independent shops that may make a given urban neighborhood unique.
Some brokers and property owners, including Mr. Lanier, say chains are taking a larger share of the market. However, Jim Bracco, executive director of the Georgetown Business Improvement District, said independent stores still account for three-quarters of the neighborhood's retail market.
http://asia.wsj.com/home-page
Most observers agree, though, that Georgetown's retail market is expanding
Coming debuts include clothier Brooks Brothers, which is opening a 20,000-square-foot store in September, men's store Jack Spade and Williams-Sonoma Inc.'s West Elm furniture division, soon testing the market with a store on a six-month lease.
"Ten years ago, Georgetown was a mom-and-pop market," said Michael Zacharia, a senior vice president in Washington for brokerage C.B. Richard Ellis Group Inc. "Now, we see national brands in the market and luxury brands looking to enter."
The evolution of Georgetown's retail market mirrors others, like Denver's Lower Downtown and Seattle's Capitol Hill, where populations are returning to downtowns for shorter work commutes and smaller homes in renovated buildings and towers. Retailers, in turn, are chasing the higher incomes and density that result from that trend. In some cases, that results in concerns national retailers are displacing local, independent shops that may make a given urban neighborhood unique.
Some brokers and property owners, including Mr. Lanier, say chains are taking a larger share of the market. However, Jim Bracco, executive director of the Georgetown Business Improvement District, said independent stores still account for three-quarters of the neighborhood's retail market.
http://asia.wsj.com/home-page
Friday, July 8, 2011
Retailers Posting Results that Beat Expectations
85 % of Retailers Posting Results that Beat Expectations
Monthly retail sales at stores open at least a year rose 7.2 per cent from last June, with 85 per cent of retailers posting results that beat expectations, according to Retail Metrics.
In the mid-market segment – which has been hit hardest by consumers’ cash woes – Gap posted a 1 per cent gain in sales that defied forecasts of another monthly decline as it struggles to revitalise its business.
Revenue at its Banana Republic chain, which offered heavy discounts last month, rose 3 per cent.
Among mid-market department stores sales rose 6.7 per cent at Macy’s, 2 per cent at JC Penney and 6 per cent at Dillards.
Limited, which runs the Victoria's Secret chain, posted a 12 per cent rise in same-store sales.
http://www.ft.com/intl/cms
Vacancy Rate at Malls Increased to 9.3%.
NNN Lease Market News
Vacancy Rate at Malls in the top U.S. Markets Increased to 9.3%.
The average vacancy rate at malls in the top 80 U.S. markets increased to 9.3% in the second quarter from 9.1% in the first, according to real-estate research company Reis Inc. Those vacancy figures are the highest Reis had recorded for malls since it started tracking malls in 2000.
Meanwhile, average lease rates at U.S. malls remained steady at $38.77 per square foot per year, unchanged from the first-quarter rate, according to Reis.
Clearly, retailers want to be in the best and strongest locations," said Michael Glimcher, chairman and chief executive of Glimcher Realty Trust, owner of 23 U.S. malls. "If you're in a big market, you better be one of the top malls [there]." Mr. Glimcher said he foresees his malls reaching an average of 95% occupancy later this year from 94.1% in the first quarter and 92.6% a year earlier. In the second quarter, Glimcher signed shoe seller DSW Inc. to replace bankrupt bookseller Borders Group Inc. at its Dayton Mall in Dayton, Ohio.
Reis calculates its averages for vacancy and lease rates by sampling 40% of the retail properties each quarter in the top 80 U.S. markets.
Corrections & Amplifications: Malls in the top 80 U.S. markets in the first quarter posted an average lease rate of $38.77 and strip-mall centers registered an average of $16.54. An earlier version of this article incorrectly reported the figures as $16.54 for malls and $38.77 for strip centers.
http://online.wsj.com/article/
Vacancy Rate at Malls in the top U.S. Markets Increased to 9.3%.
The average vacancy rate at malls in the top 80 U.S. markets increased to 9.3% in the second quarter from 9.1% in the first, according to real-estate research company Reis Inc. Those vacancy figures are the highest Reis had recorded for malls since it started tracking malls in 2000.
Meanwhile, average lease rates at U.S. malls remained steady at $38.77 per square foot per year, unchanged from the first-quarter rate, according to Reis.
Clearly, retailers want to be in the best and strongest locations," said Michael Glimcher, chairman and chief executive of Glimcher Realty Trust, owner of 23 U.S. malls. "If you're in a big market, you better be one of the top malls [there]." Mr. Glimcher said he foresees his malls reaching an average of 95% occupancy later this year from 94.1% in the first quarter and 92.6% a year earlier. In the second quarter, Glimcher signed shoe seller DSW Inc. to replace bankrupt bookseller Borders Group Inc. at its Dayton Mall in Dayton, Ohio.
Reis calculates its averages for vacancy and lease rates by sampling 40% of the retail properties each quarter in the top 80 U.S. markets.
Corrections & Amplifications: Malls in the top 80 U.S. markets in the first quarter posted an average lease rate of $38.77 and strip-mall centers registered an average of $16.54. An earlier version of this article incorrectly reported the figures as $16.54 for malls and $38.77 for strip centers.
http://online.wsj.com/article/
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