NEW MALLS

We all know that brick and mortar retail stores are having a tough time because of online purchases from companies like Amazon and retail stores themselves.   Not surprisingly, the problem extends to mall operators themselves like giant GGP Inc. that owns 126 retail  malls.  but they are working on a new mall set to open in 2018.

Mr. Mathrani said the death of shopping malls has been exaggerated. GGP has leased nearly 10 million square feet so far this year, up from 9.5 million for all of 2016. But he concedes there is a wide variance between the top-rated malls and weaker properties. For instance, foot traffic rose 1.4% at GGP’s high-end A malls for the first six months of the year, but was flat at its midtier B malls.

The peak decade for  new mall construction was 1966 - 1975   The decade does not neatly fit into presidential terms as it includes the later half of the Reagan administration, the entire Bush-41 administration, and beginning of the Clinton administration.  Thus the decline has been in effect for some time but has dropped to a new minimum during the decade of 2006 - 2015 (the end of the bush-43 administration and most of the Obama administration).

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GGP is also upending the standard formula. Only about 30% of the SoNo mall will contain retail chains, reflecting a shift in shopper spending away from clothing toward beauty, health and fitness and entertainment.

https://www.wsj.com/articles/big-mall-operator-bets-that-america-needs-a-new-mall-1508842802