Despite increased storefront vacancies at shopping malls nationwide, some higher-end real estate companies are expected to do better than average, Reuters reports.
Victor Calanog, of the real estate industry information company REIS, says publicly traded Kimco Realty Corp., of New Hyde Park, is one of those that could do better than the market overall, Reuters reported Thursday.
Kimco could benefit from tenants from lower-quality malls moving up to posher surroundings, the analyst said.
"The challenge is that without a significant increase in aggregate demand for the economy as a whole, retail tenants will play a damaging game of musical chairs, abandoning existing leases in older properties for newer properties touting better services," Calanog said.
The overall effect will hurt the market but benefit the higher-quality landlords.
"This will keep vacancies from declining significantly over the next 12 months," Calanog said.
Kimco's national holdings include many on Long Island including Airport Plaza, in Farmingdale, the Centereach Mall (above) and the Market at Bay Shore.
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