Malls to reopen, but what can shoppers expect?

Shopping centers suffer layoffs, closures while closed

New York /
Sep.September 04, 2020 07:30 AM
(iStock)

(iStock)

It’s been five months since anyone in New York City said, “Get in loser, we’re going shopping.”

And when consumers return to New York City malls beginning next week, many will find the experience has changed.

Malls, which yesterday were allowed to reopen in the city Sept. 9, have faced a reckoning during the pandemic, beaten down by lengthy closures and anchor store bankruptcies.

The reopening rules in New York forbid loitering and congregating, which means no food courts and no hanging out. And capacity will be limited to 50 percent.

One thing shoppers will not notice is the special filters to keep coronavirus particles from being recirculated by the air-conditioning, which Gov. Andrew Cuomo required as a condition of reopening.

At Manhattan Mall, J.C. Penney, the anchor store, closed in July as the chain laid off its 304 employees there and all 142 at its Kings Plaza location in Brooklyn, which will close for good Sept. 27. The once-mighty retailer filed for bankruptcy in May.

At Hudson Yards, several stores have shuttered during the pandemic including the high-end mall’s anchor, Neiman Marcus. TAK Room and Bouchon Bakery also announced closures. Mall owner Related is now offering space there to office tenants.

For other malls, debts have begun to accumulate. Empire Outlets has missed payments on an $8.5 million loan from the city’s Economic Development Corporation, although the complex has been open — which was permitted because its stores have exterior entrances.

The five boroughs are home to about two dozen malls, a small number for a city of 8.4 million people. They include Atlantic Center in Brooklyn, the Staten Island Mall, Bay Plaza Shopping Center in the Bronx, Queens Center and Queens Place in Elmhurst, Rego Center in Rego Park and Flushing Mall.

Outside of the city, where malls were allowed to open in July, Palisades Center Mall had to come to a forbearance agreement on a $389 million CMBS loan.

Contact Sasha Jones at [email protected]


Related Articles

arrow_forward_ios
Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)
Owners of some residential properties can’t hide behind LLCs anymore
Owners of some residential properties can’t hide behind LLCs anymore
Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)
Landlords take another hit: Cuomo signs expanded Loft Law
Landlords take another hit: Cuomo signs expanded Loft Law
Governor Andrew Cuomo (Credit: Getty Images)
Cuomo wants to exempt NYC from prevailing wage bill
Cuomo wants to exempt NYC from prevailing wage bill
(iStock/Illustration by Kevin Rebong for The Real Deal)
State will use undercover testers to combat housing discrimination
State will use undercover testers to combat housing discrimination
The Promenade on the Peninsula in Rolling Hills Estates, California (Google Maps, iStock)
Landlords take on short-term debt to spruce up struggling assets
Landlords take on short-term debt to spruce up struggling assets
Gov. Andrew Cuomo (Getty, iStock)
Critics say real estate got Cuomo to “circumvent” city’s climate law
Critics say real estate got Cuomo to “circumvent” city’s climate law
(Photo illustration by The Real Deal)
Underwater hotel owners are walking away from their properties
Underwater hotel owners are walking away from their properties
Photo illustration of Gov. Andrew Cuomo (Getty, iStock/Illustration by Kevin Rebong for The Real Deal)
Status of NY’s commercial eviction ban is unknown
Status of NY’s commercial eviction ban is unknown
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...