June 14, 2017
Despite the growing perception of the demise of shopping malls, a new report by Transwestern shows that regional malls have experienced positive net absorption since 2010 with occupancy at 95% at the close of 2016. The report, titled Why Mall Reuse Is Just Beginning, explains that while the retail sector certainly faces challenges, the idea that all regional malls are obsolete is simply not accurate.
Transwestern’s Brian Landes says, “The assumptions that all purchases are moving online, all retailers are going bankrupt, and all millennials reject the suburban mall and the lifestyle it represents are grossly exaggerated.”
Additional report findings:
- In 2016, the U.S. retail market experienced 105 million square feet of net absorption, representing a growth in occupancy of nearly 1%
- Mall productivity has remained relatively steady and rose 0.7% in the last year to $465-per-square-foot
The report also provides examples of regional malls that were successfully reimagined as places for education, healthcare, entertainment, office and multifamily space.
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