The Suburban Maryland community-neighborhood shopping center market had a second quarter 2012 vacancy rate of 9.2%, up 20 basis points from the prior quarter and up 40 over 12 months. The rate fell 10 basis points in July, Reis reports. The year-end rates for 2010 and 2011 were 8.9% and 9.0%, resepctively, so vacancy has not varied much the past two years. New construction totaled 2.8 million square feet from 2002 to 2011, while net absorption totaled 1.25 million, with three negative years towards the end of that time span, allowing vacancy to rise. One 80,554-square-foot neighborhood center finishing in February constitutes the year’s sole completion thus far. There are no projects under construction with 2012 completion dates, according to Reis’ latest data, but community-neighborhood shopping center construction is forecast to pick up, adding 125,000 square feet in 2013 and more than 200,000 in 2014.
Reis reports community-neighborhood center average asking and effective rents of $25.17 psf and $22.22 psf, each up 0.3% over the quarter. The rates are up 0.2% and 0.4%, respectively, year-over-year. July data show no change. This is not a good market for retail rents. Increases of less than 1.0% are forecast for 2012, indicating another year of poor rental performances. Gains exceeding 2.0% for both rental categories are not forecast here until 2015.
Power center vacancy is reported at 6.3%, down 30 basis points over 12 months. At $34.72 psf, the second quarter average asking rent for metro area power center space is up 2.1% over 12 months.
“The developers of a retail development in Brandywine unveiled plans for a new addition to the shopping center, including a 60,000-square-foot movie theater, restaurants, and office space,” Gazette.net reported. “Phase 1 of the project, which opened in 2009, includes grocery chain Safeway, Costco, along with department stores Target and Marshall’s.”