Bob Sheehan
Based on KeyPoint Partners' GRIID which maintains detailed information on virtually all retail properties in the study area, The KeyPoint Report examines supply, vacancy and absorption, retailer activity, and market composition by store size and retail categories during the 12-month period beginning March 1, 2009 and ending March 1, 2010.
"While the retail anguish in Southern New Hampshire isn't over, it's apparently subsiding. While we continue to see fallout from store closings, viable retailers are expanding and leases are getting signed," Sheehan said. "Retail inventory in the region climbed to 2.8 million s/f, higher than a year ago by 143,000 s/f, but not enough to offset the increase in vacant space, which resulted in net negative absorption of 178,800 s/f. Vacant space increased 11% during the study period - a marked improvement from last year's increase of 41.8%."
Other highlights: This year, store size categories under 25,000 s/f showed significant increases in vacancy, while the rates in categories over 25,000 s/f held their ground or improved. The 25,000-49,999 s/f segment was the top performer, and the only one to lower its vacancy rate, from 16.4% to 13.0%. The top ten towns by retail supply remain the same as last year, with Merrimack sliding ahead of Derry into the seventh spot. The "Big Three" include Nashua, Manchester, and Salem, in that order. Among cities and towns exhibiting the strongest occupancy, Milford is ranked on top with a 6.0% vacancy rate. As it did last year, Merrimack heads the list of towns with the highest vacancy rates, coming in at 20.8%. Other towns with relatively high vacancy are Salem, North Hampton, Plaistow, and Manchester, with rates all around 12%. Sleepy's, with three new locations, shares top billing with international gift retailer Sanrio, a new entry to the region, for the highest number of new stores. Leading the list in store closings was Curves for Women, which several years ago led the way in growth. Curves contracted by five locations, leaving it with 11 in the region. Blockbuster closed three locations, leaving it with six in the region.
The studied market includes 39 cities and towns in Southern New Hampshire, representing more than 835 square miles and approximately 560,800 people (42.5% of the state's population). The KeyPoint Partners' GRIID maintains detailed information on virtually all retail properties located in key New England retail markets, representing more than 252 million s/f of retail space and nearly 60,000 retail establishments.
The complete KeyPoint Report, as well as the recent KeyPoint Report for Eastern Massachusetts/Greater Boston, can be accessed at KeyPointPartners.com. The KeyPoint Report for Greater Hartford, Connecticut will follow shortly.
Headquartered in Burlington, Mass., KeyPoint Partners is one of the region's premier commercial real estate service firms, providing property & asset management services for over 24 million s/f of retail, office, and industrial properties, leasing for retail properties totaling nearly 7 million s/f, and tenant representation services for local, regional, and national retailers.