Are Shopping Malls Worth the Investment?
Are shopping malls worth the investment? According to a study done by Boenning & Scattergood, the top ten malls in America are bringing in in roughly $21 billion in retails sales annually – and fetching upwards of $1,000 per square foot in rent prices.
The U.S. retail real estate market has taken a hit recently with underperforming or out dated properties, however shoppers are still flocking to the top shopping malls, and spending their hard-earned money.
Some of those shopping malls have little to no vacancy, due to the quick moves by landlords and leasing agents who put new tenants in place of department stores and specialty apparel retails. A common theme in these top-ranked shopping malls, includes food halls with local eateries, off-price retailers, grocery stores, rotating exhibits that bring in e-commerce brands, and experiential venues.
Industry experts are keeping an eye on this trend to see how it evolves over time. There are countless shopping malls undergoing massive redevelopment, including one on the top ten list – the Fashion District in the heart of Philadelphia. “We hope that investors get a more granular understanding of the inherent value in the mall sector,” Boenning & Scattergood analyst Floris van Dijkum said.
Where are the top ten shopping malls in America? Click here to read more.
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