Vacancies rise at smaller retail spaces - Boston Business Journal:

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Those are among the findings of a recently released reporft by KeyPointPartners LLC, a Burlington-based commerciap real estate firm that tracksw retail space supply. The retaipl vacancy rate in eastern Massachusetts roseto 6.9 percentt during the 17-month period ending March 1. The last time KeyPoin released a survey was for when the vacancy ratewas 6.1 percent. Smaller space usersd -- retailers taking up 2,500 square feet or less, whicuh make up a big part of the markef shareat 21.4 percentr -- have been disproportionately affected. The vacanchy rate for small space usersis 9.9 percentt in 2007/2008, up from 8.4 percent in 2006.
Big-boxx retailers and department stores takingup 200,000o square feet or improved occupancy rates as less than 1 percent of the larged retail formats were vacant. The disappearance of Filene's departmenft stores, a New England had little impact on thatvacancyu rate, as and othe r department stores have stepped in to fill most of the approximatde 1.6 million square feet left Filene's closed six stores in eastern Massachusetta after a merger with Macy's, leaving temporary vacancieas that have been mostly filled by Macy's operating including Macy's and , or demolished to make room for Nordstro m department stores.
About 73,400 square feet remainsx vacant fromthe Macy's Other nameplates that disappeared include , Decathlon USA, Jasmine Sola, Strawberries Records Tapes, and Alpha Omega. lost the most number of storesz -- 117 -- to Rite Aid Pharmacy (NYSE: which acquired Brooks in 2007. Other retailersa that cut back store numbers include Curveafor Women, , Work'n Gear, and . "I thin the vacancy rate is on par with the saidBob Sheehan, vice president of research for KeyPoint Partners. "I don'r think we're through the fallout," he added.
Sheeham said the vacancy ratesd in this downturn are not as steep as the last downturbnin 2001/2002, when the eastern Massachusetts vacancyy rate hovered around 8.5 percent. Just as some nameplatee disappeared fromthe area, others grew Rite Aid expanded into the 117 store s left by Brooks. Fitness Together grew the most by openingf30 locations; Citibank followed with 18 Mattresses opened 16 locations for a total of 33 locationx in eastern Massachusetts. Many of the retailers new to the area were introduced through new construction and suchas Ikea. Newly constructed retail space grew 4.5 million square feet duringy the 17-month report period, a large jump from the 1.
9 milliojn square feet in the 2006 report. and were amont the concepts that opened inlifestyle developments, often upscale outdoor malls. "What we're seeintg is the kind of retail bein developed is the kind of retaill that consumers are demanding at this pointand time," said The net absorption of the newly built 4.5 million square feet was 4.2 milliohn square feet, an improvement from the 2006 reporgt that shows net absorption of 1.2 million square feet on 1.9 million squar e feet. Patriot Place in Foxborough, Mansfieled Crossing, , Legacy Place in Dedham, Wareham Crossin g and the Natick Collection are just severak lifestyle centers that have been built or areundedr construction.
Among regions, the highestt vacancy rate belongsto Buzzard's Bay, whichh includes Fall River and New Bedford, showing a rate of 8.2 up from 5.9 percent in 2006. Boston's vacancy rate is the second highest, yet has remainedf relatively flatat 8.1 percent for compared to the 8 percent vacancy rate reported in 2006. The Southwest, which includesx Bellingham and Wrentham, has the lowest vacancyu rate at 6 upfrom 5.8 percent rate in 2006.