WSR - The Shopping Center Golden Age Has Longevity
2024-05-29 12:27:38 ET
Summary
- Shopping centers have experienced a lack of development in the last 15 years, leading to full occupancy.
- The feedback mechanisms that usually regulate real estate cycles may not work in shopping centers, allowing for a prolonged period of outsized growth.
- Rental rates in shopping centers are still below the level needed for development to become viable, indicating a potential golden age for the sector.
We have already discussed how strong shopping center fundamentals are, given the lack of development in the last 15 years and demand approaching a point of full occupancy. The question I want to address today is – How long can it last?...
The Shopping Center Golden Age Has Longevity