Madison Marquette Pinpoints 63 Distressed Retail Markets

WASHINGTON, DC-- Walter Bialas, (top right photo) vice president of research, Madison Marquette, has pinpointed the weakest retail markets in the U.S. today.


He says, "No region is immune from the downturn, but some markets are more vulnerable than others. Traditional measures of what regions may be troubled look simply at vacancy rates as a measure of distress.

"Yet there are other forces at work. Below is a list of 63 metropolitan markets ranked in order of how likely they are to produce distressed assets in the coming years. We measured and indexed the following factors:

-Velocity of vacancy rate deterioration
-Current vacancy rate

-Net absorption of new inventory-New inventory in the pipeline

-Level of pre-leasing

"Based on our indexing, the top 35 metropolitan markets are fertile ground for distressed assets.

The remaining markets, although stressed, are less likely to break under the weight of recession."

Metropolitan Markets By Potential for Distressed Retail Real Estate Assets

1. Phoenix 2. Las Vegas 3. Kansas City 4. Atlanta 5. Birmingham 6. Indianapolis 7. Memphis 8. Detroit 9. Sacramento 10. Providence

11. Houston 12. Dayton 13. Dallas / Ft Worth 14. Chicago 15. Inland Empire 16. Tucson 17. Jacksonville 18. West Michigan 19. Broward County 20. Columbus

21. St. Louis 22. Denver 23. Southwest Florida 24. Cincinnati 25. San Antonio 26. Palm Beach County 27. Philadelphia 28. Tampa / St Petersburg 29. Orlando 30. Austin

31. Greensboro / Winston-Salem 32. Northern New Jersey 33. Hartford 34. Nashville 35. Pittsburgh 36. Tulsa 37. Madison 38. Richmond 39. Toledo 40. Cleveland

41. Greenville / Spartanburg 42. Westchester / So Connecticut 43. Hampton Roads / Norfolk 44. Charlotte 45. Raleigh / Durham 46. Oklahoma City 47. Milwaukee 48. Portland 49. Seattle / Puget Sound 50. Salt Lake City

51. Miami-Dade County 52. Los Angeles 53. Washington 54. Boston 55. Minneapolis 56. East Bay / Oakland 57. Baltimore 58. Orange County 59. South Bay/San Jose 60. San Diego

61. Long Island 62. San Francisco 63. New York City

Madison Marquette is a retail real estate operator, investor and developer based in Washington, DC.

More information is available at http://www.madisonmarquette.com/.

The company also publishes PLACES Magazine, a publication devoted to examining trends in retail real estate. More information is available at http://www.places-magazine.com/.