Last year gave the shopping center business a serious beating and 2009 is set to see massive contractions in the retail sector as retail leasing plummets 50 percent. Dallas-Fort Worth has over 1.7 million square feet of retail space for rent; but retail leasing levels are at their lowest in a decade.
But if that wasn’t enough to make the retail leasing sector stumble, developers have added 4.7 million square fee of additional retail space.
Exactly who will be leasing these retail spaces?
As individuals and businesses face foreclosure and bankruptcy there is less money available for the retail sector. Many retail businesses are facing bankruptcy as their sales implode because of lack of credit and the unwillingness of consumers to spend as they did during the good economic times.
Many of the retail businesses are already closing stores, restructuring in bankruptcy and causing the vacancy rate of shopping centers to skyrocket. That’s where the domino effect will take place. As the fall out from the residential market hits retailers, many developers and shopping centers will face foreclosure as they’re unable to meet their mortgage obligations.
Unfortunately, Dallas-Fort Worth is filled with shopping centers at risk for economic problems and we can expect to see more foreclosures because of it.