| What's missing? Reis analyst Brad Doremus says retail construction has performed a convincing disappearing act the past few years. It slowed to a crawl since the peak in 2007, when completions accounted for 2.1% of inventory. 2008 showed signs of slowing and just 322k SF of new space came online in 2009, the lowest yearly total in the Reis database, which goes back to 1980. However, 2010 looks ready to set a new low, with 52k SF completed so far this year (none in Q3), and no additional space expected to open doors. As a result, completions will account for just 0.05% of inventory. New construction is expected to remain depressed for several years, which should prove beneficial for existing properties that continue to struggle. So while its disappearance was a fairly impressive trick, it appears retail construction's reappearance may be a bit more challenging. |
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