Estimated 10% of U.S. malls doomed, retail execs say that’s too low

Miami /
May.May 22, 2012 03:45 PM

In perhaps the latest sign that retail malls are going the way of the dinosaur, industry executives said a prediction that 10 percent of all U.S. malls would be gone in the next decade was too conservative, according to the Wall Street Journal.

Earlier this year, real estate research firm Green Street Advisors said it believed about 100 of the nation’s 1,000 large enclosed malls would be torn down or converted for another use (note: clarification appended). At the International Council of Shopping Centers, industry executives told the Journal that prediction was probably too low.

Thanks to the increase in online shopping, there are fewer tenants interested in new mall space. Those that are interested in the property type have largely been moving only into the most desirable locations. As a result, weaker properties are struggling.

“Malls have great land, so their intrinsic value as real estate is high,” said Pennsylvania Real Estate Investment Trust President Ed Glickman. “The question with that bottom 10 percent is whether we need those properties as traditional malls.”

But mall executives, including Macerich CEO Art Coppola, whose firm owns 64 malls, said that the consensus doesn’t necessarily mean the entire industry is on its deathbead. “For every mall that disappears, there is an existing mall that gets so much better that it is more economically impactful,” he said. [WSJ]


Related Articles

arrow_forward_ios
Q2’s largest retail transaction: Regal Acquisitions’ $34 purchase of CVS-anchored retail at Boulan South Beach hotel (Google Maps)
South Florida’s retail market slowly emerges from pandemic woes in Q2
South Florida’s retail market slowly emerges from pandemic woes in Q2
Jorge and Jon Paul Perez with a rendering of the project (Getty, Related Group)
Related wins approval for another Wynwood mixed-use multifamily project
Related wins approval for another Wynwood mixed-use multifamily project
Cobblestone Commons at 8767 Boynton Beach Boulevard (Google Maps)
Tricor Financial sells Winn-Dixie-anchored Cobblestone Commons near Boynton Beach for $38M
Tricor Financial sells Winn-Dixie-anchored Cobblestone Commons near Boynton Beach for $38M
The Shoppes of Oakland Forest (Rich Commercial Group)
Shopping center in Oakland Park sells for $11M
Shopping center in Oakland Park sells for $11M
BridgeInvest's Alex Horn and Rieber Developments' Bernardo Rieber with a rendering of the project 
Rieber lands $15M loan for Aventura mixed-use project
Rieber lands $15M loan for Aventura mixed-use project
Arnaldo Bomnin and 8525 South Dixie Highway (Google Maps)
Bomnin Automotive pays $7M for former Pinecrest Mitsubishi dealership
Bomnin Automotive pays $7M for former Pinecrest Mitsubishi dealership
21046 Commercial Trail, Boca Raton (Google Maps, iStock)
New bowling alley lease couldn’t keep South Florida’s retail market out of the gutter in Q4
New bowling alley lease couldn’t keep South Florida’s retail market out of the gutter in Q4
2195 Northwest 103rd Street (Google Maps, iStock)
Four South Florida gas stations sell for $15M
Four South Florida gas stations sell for $15M
arrow_forward_ios

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

Loading...