Wednesday, January 28, 2015
Retail Consultant Predicts Half of America's Malls will Fail in 15-20 Years
Hunter Communications original news source:
Link to article:
The Shopping-Mall Crisis Is Getting More Ominous
Excerpt: "Dozens of shopping malls across the US are struggling to survive.
More than two dozen malls have shut down in the last four years and another 60 malls are on the brink of death, The New York Times reports, citing Green Street Advisors, a real-estate and real estate investments trust analytics firm.
The firm predicted last year that about 15% of US malls would fail or be converted into nonretail space within the next 10 years. That was an increase from two years earlier, when the firm said that 10% of malls would fail or be converted.
Retail consultant Howard Davidowitz expects as many as half of America's 1,200 shopping malls to fail within 15 to 20 years. He predicts that only upscale shopping centers with anchors like Nordstrom, Saks Fifth Avenue, and Neiman Marcus will survive.
'Middle-level malls are disappearing,' said Davidowitz, chairman of Davidowitz & Associates, Inc., a national retail-consulting and investment-banking firm. 'Developers are trying to do all kinds of things to save them, but at the end of the day, half of them are going to close.'
Even some luxury shopping centers are hurting. The formerly upscale White Flint Mall, for example, is nearing demolition. The 874,000-square-foot shopping center is located in the affluent suburbs of Washington, D.C., and once housed high-end department stores such as Bloomingdales, I. Magnin, and Lord & Taylor."