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Up to 25 Percent of US Shopping Malls May Close in the Next Five Years, Report Says

by Bruce Kahn | Jun 7, 2017

According to a new Credit Suisse study, between 20 percent and 25 percent of America’s shopping malls will close in the next five years. Researchers predict e-commerce will continue to pull shoppers away from bricks-and-mortar retailers. For many, the Wall Street firm’s finding may come as no surprise as several long-standing retailers have been dying off as the public’s shopping habits shift online. Credit Suisse expects apparel sales to represent 35 percent of all e-commerce by the end of the next decade — an increase from 17 percent presently. Traditional mall anchors, such as Macy’s and Sears, have announced numerous store closings in recent months. Clothiers ranging from American Apparel to BCBG Max Azria have filed for bankruptcy. The report estimates that around 8,640 stores will close by the end of December.

About the Author

Bruce A. Kahn, CCIM, CPM is a Managing Director of Foundation Group Investment Real Estate Solutions, a full-service property management and brokerage company. He has earned the designation of CCIM (Certified Commercial Investment Member) issued by the CCIM Institute, and is a CPM (Certified Property Manager) with the IREM (Institute of Real Estate Management). For further information or for a property analysis, please contact him at 206-324-9424 or by email.

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I worked with Erich Bubbel at the Foundation Group … my experience has been really wonderful. He is not only very knowledgeable on multi-families, but Erich truly cares about my success and goes above and beyond to help, solve, add value, provide resources. I don’t normally write reviews, but taking the time to write this is a small way of saying thanks for all that Erich has helped me with. Would highly recommend!

Foundation Group LLC has some top professionals in the property management field. I had a great experience meeting with them and they really know their stuff!

I visit the property on a regular basis and many tenants know me by name. While on premise I ask how are we treating you? I most always get praise on how well the building is operated.

We maintain less than 3% vacancy per year, rents are raised with the market rates.

You are seriously the most kind and understanding property manager I’ve ever had. The entire company is amazing.

Our lease is up, and although there are great incentives and lowered rent amounts all over Seattle right now due to Covid, we have chosen to stay here. That should tell you how exceptional our experience has been with Foundation Group.

Hi Michael, thanks for the quick turnaround time on the service requests I submitted just yesterday. Wow, I really appreciate that!

We really like the layout! Michael is super nice and has great professional manner.

Such a helpful company!

We live in The Villas townhome community in Woodinville, managed by the Foundation Group. Since taking over management, they have invested in automating everything from payments to maintenance requests to account profiles and more, allowing just about everything to be done via PC, Tablet or Mobile Phone. They are friendly, responsive, professional and, in these days of COVID, very safety conscious. Just a top notch team and exceptional property all the way around.

Thank you for the compassion you demonstrated in this situation. Your help is much appreciated.

Jade did good work. He was upfront about everything when the issue turned out to be bigger than expected and after his fixes, he even checked back with me to make sure the issues were resolved. This guy is professional.

We had excellent experience working with Erich Bubbel. He helped us with a transaction with professionalism and expertise. He always communicated well and expeditiously.

In the two times I’ve had maintenance requests (both unrelated issues), Jade responded quickly and completely rectified the problems. He’s a consummate professional and his quality of work is testament to his character. As a tenant, this makes a huge difference. Thanks!

I have lived in an apartment building managed by the Foundation Group for close to four years now and have been extremely pleased with their responsiveness, fairness and how clean and safe they keep the premises.

Fantastic communication and service!

I just got done living in a unit managed by Foundation Group, specifically Michael, and I couldn’t have enjoyed it more. Maintenance gets done on time, questions answered quickly and accurately, anything that my roommate and I needed, it got done. If I ever need to rent again, I will be talking to Michael first.

We did not know of Foundation Group before Issac contacted us … listing an apartment property we owned in Yakima, WA. Issac and his team proved to be honest and professional in their efforts to bring the buyer and us together through the listing and analysis period. The result was a win-win for all parties, and we were able to move our investment to a property closer to home so we can continue to keep our hands in the day-to-day management of the property. We would recommend Foundation Group to other investors like ourselves.

I have known Erich for several years and he helped me in a bunch of ways. He helped me acquire my last property and is always curious if I need anything. Recently, I changed management of my buildings to the Foundation Group and I owe it to his advice … and have seen my management expenses change for the better. Michael and John are available for me as property managers. Kate has been awesome for helping my transition. Thank you Foundation Group.

They keep their buildings priced fairly and have always made us feel like valued tenants. Highly recommend renting in any building that is maintained by this group.

Every time we have needed assistance with something, they have been right on it. And the people they send out are always friendly, professional and helpful.

I love what Foundation has done with the Villas and how responsive you are to fixing issues when compared to others I have worked with. I’ve only met you and Erich and Jade, but a good group from what I gather.

I’m a former resident of The Villas in Woodinville, which is a stunning property. This review is specifically for the property management firm for their above and beyond service. Michael Kahn has done an excellent job at elevating the property and resident experience since the firm took over. I would highly recommend having the Foundation Group manage your property – they take excellent care of the property and residents!

The tenants know I am the owner and they have my cell phone number with instructions to call me if the management is not responsive. In 2 years, I have had 2 tenant calls that are not worth commenting on.

Living at Anchors West has been a wonderful experience. If I didn’t have to move for work, we would be renewing! Kate and Leena have been nothing but friendly, accommodating, and helpful. The maintenance staff man we met was very friendly too and left notes for us after completing work. Great location, great apartment for great price, and great management!!

As residents for 10 years, we love living here and have experienced the service of multiple property management companies. Your company is the first to give us a gift, just because. Much appreciated.

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