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How Large Chain Store Closures Affect Retail Rents
Reis recently published a piece that shares how large chain store closures are affecting retail rents nationwide. The data focused on 280 store closures across 59 of the 80 major retail metros that Reis tracks.
The conclusion?
The 10 metros with the slowest rent growth decline experienced nine large chain store closures. Meanwhile, the top 10 metros with steepest rent growth experienced 6 closures.
Reis explained that same factors that cause stores closures, such as slow economic growth and oversupply, have a larger effect on rent than that of major store closures in the area. There is a small correlation between such closures and rent growth decline, though it isn’t statistically significant.
