As mall-based retailers struggle to compete with the onslaught from online shopping, the companies that own and manage the malls are finding their own business models severely challenged.
For the second time in as many weeks, there is a major agreement involving mall operators.
The
T aubman Realty owns, manages or leases 26 shopping centers in the
“By joining together, we will enhance the ability of (Taubman) to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers and substantial new job prospects for local communities," said
Malls have struggled with retail bankruptcies and store closings after a vast shift in the way Americans shop.
Since 2015, only nine malls have been built, a dramatic fall from their peak construction in 1973 of 43, according to
Vacancy rates at malls are hoovering around 4% on average , says CoStar, though struggling malls are closer to 7% vacant.
Last week
Several years ago, Simon and the company that became
Traditional malls are adding more entertainment and other non-retail options like restaurants and gyms to create new energy at their properties. They're also trying to avoid darkened areas inside their properties, which can exacerbate their problems and trigger lease clauses that allow tenants to renegotiate.
The acquisition of a majority stake in Taubman is expected to close by the middle of the year. It still needs approval from two-thirds of the outstanding Taubman voting stock and a majority of outstanding Taubman voting stock not held by the Taubman family.
Shares of
Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed., source