Vacancies are growing in the retail sector after the closings across the country of former toy giant, Toys ‘R’ Us. The retail sector saw its largest quarterly declines since 2009, according to a newly released report by Reis Inc.
The amount of occupied retail real estate in 77 major metro areas fell by 3.8 million square feet in the second quarter, Reis reported. Toys ‘R’ Us closures were mostly blamed for driving the national retail vacancy rate to 10.2 percent.
“The Toys ‘R’ Us store closings impacted the second-quarter statistics more than any other retailer has in any quarter over the last nine years,” according to the report. More than 80 Toys ‘R’ Us Inc. stores closed in over 40 metros during the quarter.
About 55 metros—or 71 percent of those surveyed by Reis—posted an increase in vacancies during the quarter. The largest jump in vacancies were Little Rock, Ark., Fairfield, Conn., and Long Island, N.Y., according to the report.
Source:
“U.S. Retail Vacancy Rate Jumps on Toys ‘R’ Us Store Closings,” National Real Estate Investor (July 3, 2018)
