February ‘12 weak small shop #retail tenant categories–Tanning Salons, Drycleaners, Video/Book Stores

Brian Smith, President and Chief Operating Officer of Regency Centers Corporation ($REG), noted in their February 2nd, 2012 Q4 2011 Earnings Call:

Very, very little leasing is being done with true mom and pop shops, so I don’t see any reason why that wouldn’t continue, although we are hearing that financing is returning to the small shops but, again, that’s not been something that’s held us back in the past, so I don’t think it’s going to affect us that much going forward.

There’s a couple of categories of small towns that we worry about. I would say that the dry cleaners are certainly one we’ve been seeing some weakness in. Tanning salons, we’ve been seeing some weakness in, and then we’ve got the ones that are well known to everybody. If there’s any remaining video or the book category, those kind of things.

 

Retail small shop leasing current market as of February, 2012:

• Very little leasing to mom and pop shops
• Weak tenant categories include

1. Tanning Salons
2. Drycleaners
3. Video/Book stores

It will definitely take some creative leasing of shopping centers to fill up these <5,000 sf small shop retail spaces.  Thoughts?

 

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