Malls are back, say mall landlords

Foot traffic is up, and so are sales

National /
Apr.April 27, 2021 07:45 AM
In March, foot traffic was up 86 percent at 50 shopping centers tracked by the data firm Placer.ai. (iStock)
In March, foot traffic was up 86 percent at 50 shopping centers tracked by the data firm Placer.ai. (iStock)

After a devastating year for malls, landlords say shoppers are heading back in droves.

In March, foot traffic was up 86 percent at 50 shopping centers tracked by the data firm Placer.ai compared to the same month last year, according to the Wall Street Journal. But that was still 24 percent lower than it was in March 2019.

Mall owners say sales are also improving as shoppers look to get out of their houses and spend their government stimulus checks.

“There’s no question things are better,” Bill Taubman, the president of Taubman Co., told the publication. “Sales are also better than anticipated four months ago.”

Landlords say that collection rates have also improved.

Ami Ziff, director for national retail at Time Equities — which owns eight malls and dozens of open-air shopping centers — said that collection rates are above 90 percent. Last April, after the first pandemic lockdowns set in, rent collections had dropped to 58 percent. They largely rebounded by the end of year.

He said he has also been signing new tenants, including healthcare providers and restaurants, at cheaper terms. Some mall owners also believe that they can benefit from deals negotiated where tenants pay a percentage of their monthly sales in rent.

Investors seem to be buying into a retail recovery as well. Shares of Simon Property Group Inc., which recently acquired Taubman, have risen 45 percent this year, per the publication.

Analysts say, however, that not all malls and shopping centers are equal. Those in places with little population growth and an oversupply of stores are likely to struggle.

[WSJ] — Keith Larsen





    Related Articles

    arrow_forward_ios
    Randy Kendrick, chief executive officer, Xebec Realty, and 12975 Bradley Avenue in Sylmar, CA (Xebec Realty, LoopNet)
    Xebec looks to flip Sylmar industrial to self
    Xebec looks to flip Sylmar industrial to self
    The CitizenM hotel in Los Angeles (Booking)
    California starts to refill hotel development pipeline
    California starts to refill hotel development pipeline
    Distress specialist buys Santa Barbara hotel
    Distress specialist buys Santa Barbara hotel
    Distress specialist buys Santa Barbara hotel
    Richard Lovett, co-chairman / agent, motion picture library literary, CAA (CAA)
    CAA picks JMB Realty’s new Century City tower for HQ
    CAA picks JMB Realty’s new Century City tower for HQ
    Kevin Staley, managing partner, Staley Point Capital; Andrew Terris, managing director, real estate, Bain Capital; and view of 12065 Pike Street (Google Maps, Bain Capital, Staley Point)
    Staley Point, Bain spring for beer bash
    Staley Point, Bain spring for beer bash
    Rexford Industrial Realty co-CEOs Michael Frankel and Howard Schwimmer and property at 4240 West 190th Street (Wexford Industrial Realty, Newmark)
    Rexford’s latest in South Bay brings 307K sf
    Rexford’s latest in South Bay brings 307K sf
    Microsoft CEO Satya Nadella, Activision Blizzard CEO Bobby Kotick and 2701 Olympic Boulevard (Wikipedia, Loopnet)
    Here’s how Microsoft will expand its SoCal office footprint with Activision
    Here’s how Microsoft will expand its SoCal office footprint with Activision
    11672 San Vicente Boulevard in Brentwood (Google Maps)
    Brentwood retail complex fetches $2,000 psf
    Brentwood retail complex fetches $2,000 psf
    arrow_forward_ios

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

    Loading...