Sector Overview: Retail REITs — An Industry in Flux

Executive Summary

Each of our Sector Overview reports provides an essential briefing on a sector or market. Themes in U.S. retail REITs include:

• Vacancy rates are declining and rent asking rates are increasing.
• All malls are not created equal — just 20% of U.S. “A” malls generate 72% of all mall sales.
• Changes in U.S. store traffic and other metrics remain negative.
• Store openings and closures are affecting the retail mix.
• Retail REITs are welcoming more non-traditional occupants, particularly food.