Real Estate
Malls. In the third quarter of 2020, vacancies in malls hit their highest rate in 20 years rising from 0.3% to 10.1%, and the average mall asking rent dropped 0.7% in Q3 and 0.6% over the course of the year.
Throughout this year we have been covering the decline of the mall, but recent bankruptcies and shutdowns are pushing the crisis further. Movie theaters and gyms are increasingly unable to make rent payments, and for malls, this is a massive blow for hopes of a timely recovery.
“Retail has gone through a radical transformation the the last five years… You are getting a knock-on effect as lessees move out. A fundamental reset is what you should be thinking about.” Read the latest on the status of malls.
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