"Top-tier malls are likely to retain their status and perform well," he said. "But lower-quality centers are more vulnerable."
Upscale malls are more able to attract retailers such as Forever 21 that are in an expansion mode. The recession has paved the way for the low-price, trendy clothier to get its stores into bigger quarters and expand its offerings, said Larry Meyer, an executive vice president.
For The Record
Los Angeles Times Tuesday, June 09, 2009 Home Edition Main News Part A Page 4 National Desk 1 inches; 53 words Type of Material: Correction
Retail space: An article in Business on Saturday about rising vacancy rates at retail centers said pottery studio Color Me Mine had "closed its doors" on Montana Avenue in Santa Monica, implying that the store had gone out of business. The business moved to another commercial space, on 4th Street in Santa Monica.
The Los Angeles company is moving into spaces vacated by defunct retailers Mervyns and Gottschalks. One of them is in Los Cerritos Center in Cerritos, where Forever 21 has stripped out a former Mervyns department store and is using the space to build a new Forever 21 in the large mall.
But the smaller shopping strips, like Montana Avenue or Ventura Boulevard, that cater to small businesses remain vulnerable.
Crandall, who has operated Decor Art Galleries in Studio City for 15 years, said there was always turnover among businesses on Ventura Boulevard.
But newcomers have stopped grabbing up empty spaces.
She blames some nearby landlords who started raising rents dramatically around 2005, when the economy was strong and chain stores with deep pockets were moving into the San Fernando Valley neighborhood.
Crandall's landlord, like many others around the region, provided some rent relief this year.
But other tenants weren't so lucky. When the recession came and consumers cut spending, it grew hard to make the high payments, and many merchants went out of business.
Said Crandall: "When people stop spending, how do you cope?"
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roger.vincent@latimes.com
