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