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Vacant retail sites likely to last in Birmingham area

The Birmingham News- May 17, 2009
by Michael Tomberlin

 

Birmingham area retail centers are being plagued by an increasing number of empty store fronts as the worst economic downturn in more than a generation shows few signs of abating.

While shoppers are noticing the vacancies, it's the retail real estate owners, managers and brokers who are most keenly feeling the problem.

"I've never seen it when there was this little activity in new store tenants looking to expand," said Emris Graham, senior vice president at EGS Commercial Real Estate Inc. and a 32-year veteran of the retail real estate business. "I've seen the retail business slow down before, but never this little activity."

Figures from a new EGS Market Report on retail space in Birmingham underscore his point:

Occupancy in area shopping centers dropped from 88.9 percent in 2007 to 87.5 percent in 2008. More closings early this year have likely brought those numbers down even more, Graham said.

There was more than 3 million square feet of vacant retail space in the area at the end of 2008, up from less than 2.7 million square feet in 2007.

Read the full story on the The Birmingham News website.

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