NextRivet’s Post

Surprise! Malls are back. Foot traffic at U.S. shopping centers has been staging a comeback since the darkest days of the pandemic, with visits last year only 2.3% below 2019 levels, according to Placer.ai, a data platform focused on commercial real estate. #retail #retailrealestate #investment #cre #investmentrealestate

No surprise! "Foot traffic at U.S. #shoppingcenters has been staging a comeback since the darkest days of the #pandemic, with visits last year only 2.3% below 2019 levels, according to Placer.ai, a data platform focused on #commercialrealestate. Open-air #centers have seen the biggest rebound in foot traffic since the pandemic hit four years ago, followed by the broader shopping-center industry, indoor #malls and #outlets. There also is hope that easing interest rates and slowing inflation in 2024 will bolster the trend further." #larrytheleasinglawyer

🛒Shopping Center Market Rebounds in 2024 The shopping center sector is experiencing a significant resurgence, with investment activity surpassing last year's total in just nine months. Deals worth over £700 million are still pending, indicating continued investor confidence. This year's transactions have been larger and more prime compared to 2023, signaling a return to pre-pandemic levels. However, Savills warns that limited supply due to a lack of new developments may constrain future growth. While optimism is growing, it's essential to remain cautious and monitor the evolving economic landscape to ensure sustainable growth. #RealEstate #CommercialRealEstate #PropTech #ShoppingCenters #Investment #MarketTrends https://lnkd.in/e5p-vcGQ

Mall visits return to near pre-pandemic levels in 2023 Mall traffic continued to return towards pre-pandemic levels in 2023, with open-air centers leading the way. According to location intelligence and retail foot traffic data firm Placer.ai’s report, “The Comeback of the Mall in 2024,” which analyzed over 3,000 American shopping centers, visits to the wider shopping center industry were just 2.3% lower than they had been in 2019. This is compared to 10.9% in 2021 and 5.9% in 2022, showing continued improvement since the COVID-19 pandemic began. Last year, the visit gaps for indoor malls and open-air centers had narrowed to 5.8% and 1% lower, respectively. Outlet also saw visits increase once again, with the visit gap compared to 2019 narrowing to 8.5% in 2023 after having dropped to 11.3% in 2022. #retail #store #shoppingcenter #improvement #footfall

Mall visits return to near pre-pandemic levels in 2023 Mall traffic continued to return towards pre-pandemic levels in 2023, with open-air centers leading the way. According to location intelligence and retail foot traffic data firm Placer.ai’s report, “The Comeback of the Mall in 2024,” which analyzed over 3,000 American shopping centers, visits to the wider shopping center industry were just 2.3% lower than they had been in 2019. This is compared to 10.9% in 2021 and 5.9% in 2022, showing continued improvement since the COVID-19 pandemic began. Last year, the visit gaps for indoor malls and open-air centers had narrowed to 5.8% and 1% lower, respectively. Outlet also saw visits increase once again, with the visit gap compared to 2019 narrowing to 8.5% in 2023 after having dropped to 11.3% in 2022. #retail #store #shoppingcenter #improvement #footfall

📢 Mall Operators to See Revenue Growth of 10-12% This Fiscal: CRISIL Limited Ratings. Mall operators are poised for a robust revenue growth of 10-12% this fiscal, building on last year’s 15% surge. The uptick is driven by contractual rental escalations, higher occupancy in newly launched malls, and an increase in tenant revenue share, supported by steady consumption growth. 🔑 Key Highlights: ✅ Occupancy Boost: Overall occupancy is set to rise to 92-93%, up from 89% last fiscal, propelled by new malls launched in the past two years. Established malls maintain stable occupancy at ~95%. ✅ Steady Operating Margins: Ebitda margins remain robust at ~70%, underscoring operational efficiency. ✅ Healthy Balance Sheets: Debt levels stay under control, with cash flows supporting expansions of 2-3 msf over the next 2-3 years. ✅ Debt Metrics Improvement: Debt-to-Ebitda expected to improve to 2.6-2.8x, while debt service coverage remains strong at 2.2x. 💬 Expert Insights: Gautam Shahi, Director, CRISIL Ratings, said, “Revenue growth is backed by rental escalations, new mall ramp-ups, and stable occupancy. While retail consumption growth moderated in H1 due to a high base effect, festive and wedding seasons are expected to drive a rebound in H2.” Snehil Shukla, Associate Director, CRISIL Ratings, added, “With healthy operating performance and disciplined debt management, the sector is positioned for stable credit profiles despite ongoing expansions.” As consumption trends recover and malls prioritise occupancy, the outlook for the industry remains optimistic. However, large debt-funded acquisitions will warrant close monitoring. #RetailGrowth #MallOperators #CommercialRealEstate #CRISILRatings

It's a good time to be a retail landlord! Retail fundamentals are remarkably strong. While this article focuses on the U.S. market, the strong demand and lack of supply are even more pronounced here in Canada.

SA Retail Market: Record Occupancy Rates and Limited Pipeline Read the full article below..

Canada’s Top Shopping Centres by Sales Per Square Foot [Analysis] Retail Insider analyses the top malls in Canada by sales per square foot, including which malls are top, what cities they're in, and how Canadian downtowns include several properties. Craig Patterson ICSC #RetailInsider #ICSC #ShoppingCentres #Study https://lnkd.in/gnP3nCs4

Mall traffic inches closer to pre-pandemic levels Read Chain Store Age's article to find out how open-air centers have outperformed the industry average and how hybrid workers are taking advantage of their new, and likely more flexible schedules to frequent malls in the afternoon. #RetailTrends #MallTraffic #HybridWork #OpenAirCenters #ShoppingCenters