When I was growing up, regional malls typically had the usual department stores — JC Penney, Sears and Macy’s. The special one was Nordstorm.
So I was surprised to learn the retailer is closing more stores in 2019 than it closed in the previous three years combined. With its profits falling, Nordstrom has closed three stores so far this year, and a fourth will close by August.
Overall vacancies at U.S. shopping centers have hit the highest level in eight years, according to recent data from the Financial Times. Reis reported the vacancy rate for regional malls was 9.3 percent during the first quarter 2019, unchanged from 9.3 percent in first quarter 2018, and up from 8.6 percent in the second quarter 2018. This is down slightly from a cycle peak of 9.4 percent during the third quarter 2011, and up from the cycle low of 7.8 percent in first quarter 2016.
And the return for institutional investors as measured by the NCREIF Property Index was
