Tuesday, February 6, 2018

In a cutthroat retail environment, malls are stealing tenants from each other

A file photo showing shoppers walking at the Roosevelt Field Mall in Garden City, New York.As most retailers have halted growing their footprints, mall and shopping center landlords are forced to compete for the best in the business. A deal for Nordstrom marks just the latest example of this trend.

The high-end department store chain revealed late last week it will be leaving Oak Park Mall in Overland Park, Kansas, for Country Club Plaza, roughly 12 miles down the road in Kansas City.

"The good malls will pick off the good tenants," Boenning & Scattergood analyst Floris van Dijkum told CNBC. "It's indicative of the heightened competition. ... Nordstrom is making a rational decision to go from a $460 sales-per-square-foot mall to a $625 sales-per-square-foot property.". . . more

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