U.S. MALL VACANCY LOWERING OFF 7-YEAR HIGH
The vacancy rate at regional and super regional malls was 9 percent in the fourth quarter of 2018, based on a survey released by real estate research firm Reis of 77 metropolitan areas across the United States.
That’s down from 9.1 percent — a seven-year high — in the third quarter, but up from 8.3 percent at the end of 2017. That’s also above a 10-year average vacancy rate for these malls of 8.4 percent during the fourth quarter.
The bad news is that going into 2019 retailers big and small are expected to shut a number of locations in the coming months. As these announcements tend to come during the first quarter, after the holiday season has finished and com- panies have a better grip on where they stand. The good news is that average mall rent increased 0.2 percent during the fourth quarter after dropping 0.3 percent during the prior quarter. This means that landlords were able to bring in higher-paying tenants replacing closing retailers more profitable businesses like hotels and co-working spaces.
METRO VANCOUVER HOME SALES FALL CONTINUE TO TUMBLE
Home sales in metro Vancouver continue to fall and are at their lowest level in nearly 20 years and as this once red-hot real estate market continues to show the signs that it is cooling off. The total number of homes sold in Metro Vancouver last year fell to 24,619, marking the lowest total since 2000, according to data from the Real Estate Board of Greater Vancouver. That’s down 31.6 percent from approximately 36,000 in 2017 and 25 per cent below the region’s 10-year average. The composite benchmark price for a home, which includes detached properties, townhomes and condominiums, dropped 2.7 percent from December 2017 to finish the year at $1,032,400.
Detached homes led the fall as their benchmark price fell 7.8 per cent from December 2017 to $1,479,000.
Townhome and condominium prices saw small gains over the year. The benchmark price of a townhouse rose 1.3 percent year-over-year to $809,700, while the benchmark price of a condominium advanced 0.6 percent to $664,100.
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JANUARY 2019 • SPOTLIGHT ON BUSINESS MAGAZINE
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