Upbeat Spring Mood To Pay Dividends in the Fall
The mood coming out of the annual shopping center convention in Las Vegas last month was decidedly upbeat and cautiously optimistic. There is a feeling building that we have begun to turn the corner in retail real estate. As one attendee commented, “We are no longer looking into an abyss.”
There are still many hurdles to climb. While the unemployment rate across the nation and in Indiana shows signs of topping, it is still at a historically high rate of about 10%. Retail occupancy and rents are still well below previous levels and will likely remain so for the next 18-24 months. However, the increase in retail and restaurant activity is likely to pay benefits in 3Q and 4Q 2010 as more leases are signed and more store openings are emerging on the horizon. Fortunately, new development is at a virtual standstill and will remain so for the foreseeable future. We are yet not in need of new space because there is plenty of work to do leasing vacant space and helping our clients start new businesses. Today’s increased activity levels give us a bit more confidence going into the second half of the year.
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