Brookfield Properties to lay off 20% of retail division

Cuts will impact about 400 workers

TRD NATIONAL /
Sep.September 22, 2020 04:14 PM
Brookfield Place in Manhattan and Jared Chupaila, CEO of Brookfield Properties’ retail group (Getty; Brookfield)

Brookfield Place in Manhattan and Jared Chupaila, CEO of Brookfield Properties’ retail group (Getty; Brookfield)

Brookfield Properties, one of the largest mall owners in the country, plans to lay off 20 percent of its retail staff, according to a report by CNBC.

Brookfield Properties plans to cut jobs at its retail division because of a decline in business and in new leasing activity. The company said it will make cuts “to align with the future scale of our portfolio,” according to Jared Chupaila, CEO of Brookfield Properties’ retail group in an internal document shared with CNBC.

Chupaila said the reductions will affect staff at the company’s corporate headquarters and its leasing agents. Brookfield Properties retail division has about 2,000 employees.

Brookfield Properties is a subsidiary of Brookfield Property Partners, a real estate arm of the Toronto-based investment manager Brookfield Asset Management. The company became one of the largest mall owners in the country when Brookfield Property Partners acquired Chicago-based GGP for $9.25 billion in 2018 and merged the assets into Brookfield Properties.

The company has more than 170 retail properties in 43 states, according to its website. Its portfolio includes Brookfield Place in downtown Manhattan, Shops at Merrick Park in Coral Gables, Florida, and the Crown Building in New York.

Retail, especially malls, have taken a hit during the pandemic. A number of anchor tenants have filed for bankruptcy.

In September, Brookfield Property Partners and Simon Property Group agreed to buy J.C. Penney out of bankruptcy in a deal valued at $1.75 billion. J.C. Penney is an anchor tenant at many of Brookfield and Simon Property’s malls.

Brookfield did not immediately return a request for comment. [CNBC] — Keith Larsen 


Related Articles

arrow_forward_ios
Brookfield's Ric Clark and Two Hanson Place in Brooklyn (Credit: Google Maps, iStock)

Brookfield signs energy company to big lease in DoBro

Brookfield signs energy company to big lease in DoBro
The Bronx saw a particularly strong surge in development, including a tower in Brookfield Properties’ Bankside development (Credit: iStock)

City sees highest number of new building permits in years

City sees highest number of new building permits in years
Brookfield's largest-ever $15B property fund has invested in properties from New York (666 Fifth Avenue) to Bangalore (the Leela Palace hotel) (Credit: Brookfield, Getty Images, Leela)

Real estate fundraising hits lowest level since 2013

Real estate fundraising hits lowest level since 2013
Sandeep Mathrani (Credit: iStock)

Sandeep Mathrani is leaving Brookfield

Sandeep Mathrani is leaving Brookfield
Renderings of Brookfield's Bankside in the South Bronx (Credit: ArX Solutions)

This is what Brookfield’s South Bronx megaproject will look like

This is what Brookfield’s South Bronx megaproject will look like
Brookfield's Rick Clark and RFR Realty's Aby Rosen with the Lever House at 390 Park Avenue (Credit: Getty Images and Google Maps)

Aby Rosen makes it two Lever House lawsuits in two weeks

Aby Rosen makes it two Lever House lawsuits in two weeks
Ron Moelis, Ric Clark and 552 Main Street on Roosevelt Island (Credit: Brookfield, L+M, Google Maps)

L+M and Invesco partner to buy 2,800 market-rate apartments

L+M and Invesco partner to buy 2,800 market-rate apartments
Michael Milstein and 335 Madison Avenue (Credit: Google Maps)

Milstein finalizing $750M refi at 335 Madison tech hub

Milstein finalizing $750M refi at 335 Madison tech hub
arrow_forward_ios

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

Loading...