Retail Improves, but Doubts Persist

By Kris Hudson

...Shopping-center vacancy held steady at 10.9% in the fourth quarter, unchanged for the third consecutive quarter, Reis said. That vacancy rate remains at the highest that Reis has tracked since 1991. What is more, net absorption for U.S. shopping centers in the quarter-the net amount of new space leased-amounted to just 92,000 square feet after a gain in the previous quarter of 474,000 square feet.

Lease rates at shopping centers remained relatively unchanged in the fourth quarter, declining to $16.56 per square foot per year from $16.58...