GSA Daily staff report
Published Nov. 3, 2009

Short-term rentals to Halloween merchandisers helped push retail real estate vacancies down to 11.6% in the third quarter, the second straight quarter in which vacancies fell.

In a third-quarter analysis and outlook, Grubb & Ellis|The Furman Co. said absorption, or the net change in occupied space, was its highest in six quarters.

“The improvement in market numbers was driven by two main factors: Halloween retailers and the completion of a new Academy Sports on Woodruff Road,” the report states.

Halloween retailers accounted for 100,000 square feet of absorption, Grubb & Ellis said

“Not only are these short-term retailers leasing more square footage than in previous years, but they are taking some of the best spaces in the market as well. Halloween Express backfilled spaces formerly occupied by Circuit City on Woodruff and Blackstock Roads. Spirit Halloween took the former Goody’s space at Cherrydale Point,” Grubb & Ellis said.

With the completion of Academy Sports on Woodruff Road, “the company’s growth indicates that while overall market activity is slow, some retailers cans till expand,” Grubb & Ellis said. “Academy Sports is unique in that while they are a regional retailer in located in markets throughout the Southeast, they have limited presence in Florida and other markets hit very hard by major residential price corrections, which directly impact the ability for consumers to spend.”

The Grubb & Ellis analysis forecasts:

• The next twelve months will present a great opportunity for tenants to land best-in-class space in the market.
• Market vacancy is not likely to rise above 12.5% by the end of 2010.
• No major new construction will be completed until 2011.