No Space?! It's a Good Thing
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|Retailers are leasing, but developers aren't adding supply, so the markets are approaching equilibrium, Mid-America Real Estate Group principal Dick Spinell tells us. He'll have more to say on the subject as a national panelist at Bisnow’s State of the Market on Oct. 4 at the Palmer House Hilton. (Sign up today!)|
|Both urban and suburban retail markets are coming back “with a vengeance,” Dick says. (It's possible he writes movie taglines in his spare time.) In the 25 years that Mid-America has tracked Chicagoland retail, 4.5M SF of new space has been delivered annually. Since ’07 though, there’s been about 1M SF each year, or as Dick puts it, virtually no new space, because single-tenant occupancy stores absorbed most of the new construction. The good news: rents are only about 10% off the ’07 peak, and he expects them to be only 5% off in ’13. During the worst of the Great Recession, rents fells as much as 50%.|