April 8 (Bloomberg) -- Vacancies at U.S. malls and shopping centers rose to their highest in more than 10 years as consumer spending fell and stores closed in the recession, according to first-quarter data released today by Reis Inc.

More empty stores and lower rents are ahead “unless conditions change dramatically,” said Victor Calanog, director of research at the New York-based real estate research firm. He forecast the declines would last through next year.

“This outlook assumes positive job growth and an increase in consumer spending beginning in early 2010,” Calanog said in a statement.

More than a dozen retailers, including Circuit City Stores Inc., Linens ‘n Things Inc. and Sharper Image Corp., filed for bankruptcy protection in 2008 as the credit squeeze and recession hurt sales. Confidence among U.S. consumers stayed near a record low last month and a survey of purchasing managers showed business deteriorated further.

Retail vacancies at shopping centers were the highest since Reis began publishing quarterly data in 1999 and reflected a net decrease in occupied space of 8.7 million square feet, the biggest drop for a single quarter and more than the 8.65 million square feet given back during all of 2008.

Rents paid by tenants fell 1.8 percent from the previous quarter and 2.9 percent from a year ago, while landlords’ asking rents fell 0.6 percent from the prior quarter, the most on record.

The vacancy rate at neighborhood and community shopping centers rose to 9.5 percent from 8.9 percent the previous quarter and 7.7 percent a year ago, according to Reis. Shopping centers are typically anchored by a grocery or drug store.

Mall of America

Neighborhood shopping centers tend to be 30,000 to 150,000 square feet and contain mainly convenience retailers. Community shopping centers are 100,000 to 350,000 square feet and might include a discount department store or home improvement store, according to the International Council of Shopping Centers.

Vacancies at regional malls and super-regional malls such as the Mall of America in Minnesota, South Coast Plaza in Southern California and Tyson’s Corner in Virginia climbed to 7.9 percent from 7.1 percent in the fourth quarter and 5.9 percent a year earlier, Reis said. It was also the highest vacancy rate since Reis began surveying malls in 2000.

Regional malls typically include department stores and fashion and general merchandise retailers and range in size from 400,000 to 800,000 square feet, while super-regional malls are defined as those larger than 800,000 feet.

Landlords’ asking rents for regional malls fell 1.2 percent from the prior quarter, the most in five years, said Reis.

While Reis doesn’t forecast regional mall vacancies, “the outlook for the retail sector in general is bleak,” Calanog said.

To contact the reporter on this story: Hui-yong Yu in Seattle at hyu@bloomberg.net

Last Updated: April 8, 2009 00:01 EDT