Atlanta -- Jones Lang LaSalle Retail Group said that vacancy rates should fall far enough to enable some landlords in every U.S. market to demand slightly higher rents — at some point over the next six months.
“We’re not quite there yet, but by the end of this year virtually all markets should see rent growth,” said Greg Maloney, president and CEO of Jones Lang LaSalle Retail Group. “Quite a few markets are already posting year-over-year growth, including Miami, Fort Lauderdale, Dallas, New York, Tampa, San Francisco, Hawaii, Los Angeles and Boston.”
Most of the rent-growth metros are also enjoying robust local economies, according to JLL.
While national averages show rents still declining year over year, rents overall rose 0.3% in the second quarter of this year compared to the first quarter.
Strip and neighborhood shopping centers have the highest vacancy rate among property types at 10.4%. However that number represents an 11% year-over-year decline, the first since 2009.
Power centers posted the largest vacancy decline, falling 60 basis points year-over-year to 5.9%.