February 19th, 2010
The Business Journal of the Greater Triad Area
The explosion of shopping centers across the Triad in recent years appears to be fizzling out.
Observers say there are three main causes: tight lending restrictions, high vacancy rates in existing properties and reluctance by major retailers to add sites.
During the third quarter of 2009, the most recent data available, there was about 6,000 square feet of retail space under construction in the Triad, according to research by Karnes, which tracks the commercial real estate market for the local Realtors associations. To put that in perspective, the average grocery store is about 47,000 square feet.
By comparison, during the third quarter of 2008, more than 325,000 square feet of retail space was under construction locally. And for the same quarter in 2007, at the height of the retail boom, more than 1 million square feet of space was under construction.