Earlier this month the International Council of Shopping Centers released the results of their February Shopping Center Executive Opinion Survey, which revealed that business conditions improved for the fourth-straight month.
- The Business Barometer reached 55.3%, which was the second-highest month reported since April 2007. (A reading of 50% means industry conditions were relatively unchanged from the prior period; a reading above 50% means there has been an improvement.)
- The Current Evaluation Index grew modestly with a reading of 52%. Ratings for sales, customer traffic and capitalization rates all improved from the previous month, while rent spreads declined for the second month in a row.
- The Expectations Index advanced strongly with a 58.6% reading, the highest in nearly seven-and-a-half years. All components of the index remained above 50%, with occupancy rates leading the way. The other components include sales, customer traffic and occupancy rates.
As for the biggest challenges that lie ahead, the panel of executives cited low consumer confidence, constrained financing and cash availability, and government restrictions and tax legislation affecting the real estate industry.