Thursday, May 2, 2019

Regional Mall Owners Focus on Adaptive Reuse and Smaller, More Nimble Tenants

NREI
Malls are taking a hit with the loss of anchor department stores like Sears, J.C. Penney, Bon-Ton, Carson’s and Macy, not to mention in-line tenants.

So far this year, U.S. retailers have announced they will close 6,105 stores, while opening 2,658 in 2019, according to global market research firm Coresight Research. This compares to 5,864 closures and 3,239 openings for all of 2018.

In the wake of more than two dozen Sears closures, the regional mall vacancy rate ticked up 30 basis points to 9.3 percent in the first quarter of 2019, reported real estate research firm Reis Inc. However, growth in average rents was flat.. . . more