Shopping centers across the country are generating more sales and income, based on the latest findings from Chicago-based IREM.
The association’s 2014 Income/Expense Analysis: Shopping Centers reports that the median income for open shopping centers across the country stood at $17.18 a square foot in 2013. That’s up from $16.18 a square foot in 2012.
At the same time, the costs to operate shopping centers fell. The report found that the operating costs of open shopping centers fell to $5.07 a square foot in 2013 from $5.20 a square foot one year earlier.
The IREM study looks at the operating costs and income of 361 shopping centers across the United States. So it’s a good benchmark of how the shopping center business is faring. It’s little surprise that income is on the rise for this type of real estate; as the national economy slowly continues to improve, consumers are willing to spend more at shopping centers.
What are the biggest expenses for shopping centers? It comes as little surprise to the owners of these centers, but insurance and taxes accounted for 43.4 percent of the typical open center’s operating costs in 2013. Contracted services such as landscaping, security and trash removal. made up an additional 14.4 percent.
The IREM report also found fewer vacancies in shopping centers in 2013. According to the report, the occupancy level for open shopping centers in 2013 stood at 93 percent. That is up slightly from 92 percent in 2012.
