Retail Stores Optimistic But Cautious

Although it appears that retailers may be enjoying the Christmas rush, some shopping center managers are not being too confident. The latest Jones Lang Lasalle survey revealed that center managers are optimistic but cautious on the prospect of a profitable Christmas.

The survey showed that more than 50 percent of shopping centers are expecting to achieve sales growth in the next 12 months. Data also indicated that sub-regional centers turnover increased by some 2.8 percent while vacancy rates declined.

Sub-regional centers turnover on neighborhood centers jumped by 2.7 percent but vacancy rates increased.

Center managers also reported the inquiries on tenants increased 16 percent in September from 9.6 percent in June. The respondents agree that it is important to improve the tenancy mix to ensure and drive growth.

David Snoswell said that center managers should offer a broader services mix to fill vacancies and replace retail categories that are not doing so well. Snoswell is the research director of Jones Lang Lasalle.

Richard Fennel said incentives would also play an important role to maintain high occupancy rates for many centers. Fennel is the property management head of Jones Lang Lasalle.

Tammy Smith, CBRE research manager, said the industry would continue to be robust.