Retail vacancies rise with store closings.(knowitall)

According to a recently released survey from the International Council of Shopping Centers (ICSC), retail store closings are on the rise, but stores in densely populated urban areas will continue to thrive, said real estate investment services firm Marcus & Millichap.

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Compared with 1,522 store closings in the first half of 2007, the first six months of 2008 were nearly double that with 2,831 announced closings. In addition, ICSC projects that 144,000 establishments will be closed in 2008, up 7 percent over 2007.

Given the store closings, vacancy rates have increased across the country, according to Marcus & Millichap Research: At midyear, vacancy in the United States was 10.7 percent, up from 9.7 percent in 2007. The firm projects that at year-end 2008, vacancy will hit 11,1 percent nationally. Of note is where shops are staying open: Densely populated urban areas are doing well, as people seek to cut back on the cost and inconvenience of driving.

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