Vacancies at open-air shopping centres in the US have dropped to historically low levels, defying forecasts of a retail apocalypse caused by the rise of ecommerce.
Landlords of complexes anchored by big-box chains, discount merchants and supermarkets have gained power to raise rents as leases expire. New construction has been stymied by higher interest rates and soaring building costs.
Only 6.2 per cent of outdoor shopping centre space is currently available for rent, according to property data company CoStar, the lowest since it began tracking availability in 2006. The trend stands in contrast with enclosed shopping malls, where vacancies are rising.
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