The level of vacant retail square footage in Eastern Massachusetts in the period beginning March 1, 2008 and ending March 1, 2009, has increased 23.9 percent, according to a market report released by Burlington-based commercial real estate service firm KeyPoint Partners.
The increase in vacancy has resulted in more than 3 million square feet and 1,000 more units of unoccupied space
The report, "The KeyPoint Report for Eastern Massachusetts/Greater Boston 2009," states that in total there is 15.6 million square feet and 5,400 retail units vacant in the region.
"Perhaps at no time since the Great Depression has the retail real estate industry experienced more volatility than it did in 2008," said Bob Sheehan, vice president of research. "The disconcerting mood that pervaded the offices of retailers and shopping center owners this past year surely surpasses the distress of other recent recessions."
The report indicates, however, total retail inventory in Eastern Massachusetts edged forward in the midst of the economic downturn. Retail space on March 1 in the region was 183.7 million square feet, a net year-over-year gain of 1.5 percent. At the same time, the vacancy rate in Eastern Massachusetts accelerated to 8.5 percent from the year ago level of 7 percent and climbed for the third-straight year.
The closings of several major retail chains contributed to the rise in vacancy. Thirteen retailers, eight of which are no longer in operation, lost at least 10 locations. These include Mattress Discounters, Corners, Linens ‘n Things, Circuit City, MassBank, KB Toy, Limited Too and Tweeter. Retailers that declined by at least 20 stores were Mattress Discounters, Blockbuster and Curves.
