An increase in year-over-year sales combined with strong customer traffic patterns has shopping center executives more upbeat about current business conditions and are fueling expectations for even stronger business conditions over the next six months, according to the results of a recent survey.
The ICSC-BTM’s Shopping Center Executive (SCE) Business Barometer, from the International Council of Shopping Centers (ICSC) and The Bank of Tokyo-Mitsubishi (BTM), measures current business conditions and forecasts six months ahead in five performance measures-year-over-year sales growth, year-over-year customer traffic, changes in occupancy rates, changes in rent spreads, and changes in capitalization rates.
“According to the survey, retail real-estate executives continued to see improving industry business conditions in October,” explained Michael P. Niemira, senior economist, Bank of Tokyo-Mitsubishi, Ltd. “Moreover, the executives surveyed also remained very optimistic that business conditions will improve further over the upcoming six months.”
The ICSC-BTM’s SCE Business Barometer gauge the state of the U.S. shopping center industry. The survey is used to gather the opinions of the industry’s top executives. The survey is conducted on a monthly basis, and as results accumulate, will be used to develop an aggregated index of these industry metrics. The latest survey information was collected from over 45 mall developers and owners between Oct. 15-31.
The Bank of Tokyo-Mitsubishi, Ltd (BTM) is a principal subsidiary of the Mitsubishi Tokyo Financial Group, which ranks among the world’s top banking and financial groups with total assets in excess of $700 billion. ICSC is a global trade association of the shopping center industry. Its more than 42,000 members in 77 other countries include shopping center owners, developers, managers, marketing specialists, investors, retailers and brokers, as well as academics and public officials. It is headquartered in New York City with offices in Washington, D.C., Toronto, London, and Singapore.