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REIS, Brad Doremus, retail, rent, growth, decline, commercial real estate, Baltimore, MD
Back in Q2 2010, Baltimore retail center owners were treated to a surprise uptick in effective rent (0.3%) and falling vacancies. But this turned out to be just fool?s gold, says Reis analyst Brad Doremus. All optimism was dashed the following quarter as rents fell and vacancies increased. However, the rent decline was minimal as it was the following quarter (rents fell 0.1% in Q3 and Q4), well below the quarterly drops seen between Q4 2008 and Q1 2010. But Q1 2011 brought bad news again. Effective rents deteriorated 0.4%,erasing all gains made in Q2 2010, while national rents fell just 0.1%. Reis expects nationwide effective rent growth to outpace Baltimore?s gains over the next several years. Yet Baltimore's retail centers don't have as large a hole to dig themselves out of. Since hitting its peak, the average US effective rent is down 6.2%. Comparatively, Baltimore rents fell 4.4% peak to trough.
Related Topics: Brad Doremus