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"We Are Extremely Over-Retailed" Picturing The Death Of America's Malls
Zero Hedge ^ | 01/05/2015 | Tyler Durden

Posted on 01/06/2015 7:33:54 AM PST by SeekAndFind

Starting in the mid-1990s, "the mall genie was out of the bottle," says one mall analyst, "and it was never going to come back." While about 80% of the country’s 1,200 malls are considered healthy (vacancy rates of 10% or less), that compares with 94% in 2006; and more than 30 million square feet of malls are more than 40% empty, a threshold that signals the beginning of what one one analyst called "the death spiral."

 

As The NY Times reports, like beached whales, dead malls draw fascination as well as dismay, "nobody ever thinks a mall is going to up and die," but as the following images show - dead or dying they are.

 

“It’s depressing,” Jill Kalata, 46, said as she tried on a few of the last sneakers for sale at the Athlete’s Foot, scheduled to close in a few weeks. “This place used to be packed. And Christmas, the lines were out the door. Now I’m surprised anything is still open.”

“I have no doubt some malls will survive, but major segments of our society have gotten sick of them,” said Mark Hinshaw, a Seattle architect, urban planner and author.

“It is very much a haves and have-nots situation,” said D. J. Busch, a senior analyst at Green Street. Affluent Americans “will keep going to Short Hills Mall in New Jersey or other properties aimed at the top 5 or 10 percent of consumers. But there’s been very little income growth in the belly of the economy.”

“We are extremely over-retailed,” said Christopher Zahas, a real estate economist and urban planner in Portland, Ore. “Filling a million square feet is a tall order.”

“Everybody has memories from childhood of going to the mall,” said Jack Thomas, 26, one of three partners who run the site in their spare time. “Nobody ever thinks a mall is going to up and die.”

Nearly 15 percent are 10 to 40 percent vacant, up from 5 percent in 2006. And 3.4 percent — representing more than 30 million square feet — are more than 40 percent empty, a threshold that signals the beginning of what Mr. Busch of Green Street calls “the death spiral.”

Industry executives freely admit that the mall business has undergone a profound bifurcation since the recession.

“Our business is more regional and high-end focused,” he said. “There are gradients of dead or dying or flat, but anything that’s caught in the middle of the market is problematic."

 

“The mall genie was out of the bottle,” Mr. Simmons said, “and it was never going to come back.”

Read more here...



TOPICS: Business/Economy; Society
KEYWORDS: bhoeconomy; ecommerce; mall; retail; shoppingmall; trends
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To: PapaBear3625

#19 Brookdale mall in Brooklyn Park by Minneapolis, Minnesota was the place to go when I was bit younger. The news stories about the mall failing sited the bus stop as a big reason for the shoppers going elsewhere.

I also use to go to the Golden Valley Shopping Center. I would ride my bike there as a kid. Today my parents would be arrested for letting me.

I recognize several of these stores. I had been away since 1988 and visited in 2004 and the stores are still there for the most part. The strip mall across the street has been removed and replaced with a better looking strip mall so I guess it is just a matter of time for this place.
http://dumpystripmalls.com/golden-valley-shopping-center-golden-valley-mn/

Dead Malls Stories
http://deadmalls.com

Dumpy Strip Malls
http://dumpystripmalls.com/


81 posted on 01/06/2015 9:39:41 AM PST by minnesota_bound
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To: SeekAndFind

-—In other words, not much transaction
-—(i.e., purchase of goods and services ) going on.

Thats how I read it...


82 posted on 01/06/2015 9:45:08 AM PST by HangnJudge
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To: EDINVA

There are simply not as many chain stores nowadays as in prior years. That’s part of this trend as well. As you note about the DC area, many old local chains went out of business. Off the top of my head, I can think of Woodies, Hecht’s, Lansburgh’s, Garfinckel’s, all gone . All used to have major anchor stores in DC area malls. There simply are not enough remaining chain stores to rent these vacant retail spaces.


83 posted on 01/06/2015 9:53:53 AM PST by Dilbert San Diego (s)
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To: SeekAndFind

I went to the Great Plains Mall in Olathe, Ks a few days before Christmas. There were people but it was surprisingly empty for that time of the year. I also noticed that more than half the store spaces had their metal gates closed. Another (what used to be popular) mall called Metcalf South in Overland Park Ks. closed this year. I know a lot of malls bit the dust around Kansas City due to crime and with the lack of shoppers now days I probably wouldn’t visit the remaining ones after dark.


84 posted on 01/06/2015 9:56:06 AM PST by Starstruck (If my reply offends, you probably don't understand sarcasm or criticism...or do.)
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To: dfwgator

ROFLMAO

I wondered what impact constructing a Bus Rapid Transit transfer station out front of a local mall would do...

...you guessed it!


85 posted on 01/06/2015 10:03:59 AM PST by logi_cal869 (-cynicus-)
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To: Disambiguator; Dilbert San Diego

Our transit system had a problem with teenagers hanging out in a subway station. Then they started piping in classical music- teens gone, commuters loved it.


86 posted on 01/06/2015 10:32:16 AM PST by Squawk 8888 (Will steal your comments & post them on Twitter)
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To: Dilbert San Diego

And we can’t forget Amazon and other online retailers. I think I did about half my own Christmas shopping, limited tho it may be, online.


87 posted on 01/06/2015 10:36:02 AM PST by EDINVA
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To: Squawk 8888
Our transit system had a problem with teenagers hanging out in a subway station. Then they started piping in classical music- teens gone, commuters loved it.

Great solution, and cheap, too!

88 posted on 01/06/2015 10:40:27 AM PST by Disambiguator
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To: SeekAndFind
“Everybody has memories from childhood of going to the mall,”

Not me. I don't remember seeing a mall until I was well into my twenties.

Where I live now, there is no mall. There is no mall in the next nearest town either. In fact, there is no mall within 150 miles and, even if there were, I could not drive there because the town where I live is on an island.

d8^)

89 posted on 01/06/2015 10:46:47 AM PST by Chuckster (The longer I live the less I care about what you think.)
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To: Disambiguator; Squawk 8888
‎1‎/‎6‎/‎2015‎ ‎12‎:‎40‎:‎27‎ ‎PM · 88 of 88 Disambiguator to Squawk 8888

One of you fellers better run out and buy a lottery ticket.

90 posted on 01/06/2015 10:48:04 AM PST by Fightin Whitey
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To: Fightin Whitey; Squawk 8888

Powerball is at $146M right now.


91 posted on 01/06/2015 10:54:36 AM PST by Disambiguator
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To: SeekAndFind

We’ve had three malls in our metro die, Bannister and Independence in Missouri, and I think Indian Creek in Wyandotte County. Two that are terminal are Mall of the Great Plains in Olathe and Metcalf South Mall just down the street from us. Sickness has set in at Ward Parkway. I know this in spite of the fact that I almost never go to malls. I think that part of the reason that they are dying are the big box stores. Another is that there are people who drop off their kids and the kids trash the place... whatever their ethnicity. The first three I mentioned - their demise was blamed on blacks but it was more than that. Metcalf has been owned by a senile old man and the world is waiting for him to die. I’m pretty sure it will be torn down then. Its almost empty.


92 posted on 01/06/2015 10:59:11 AM PST by Mercat
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To: Mercat

Metcalf South is open? I lived in “Perfect Village” from 2004 to 2012 and I always thought the place was closed.


93 posted on 01/06/2015 11:17:34 AM PST by Overtaxed
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To: KoRn

The NRV mall has one big ticket: New River Community College. They could anchor up that whole mall if needed. I’m surprised they haven’t occupied the Sears.


94 posted on 01/06/2015 11:18:41 AM PST by AppyPappy (If you are not part of the solution, there is good money to be made prolonging the problem.)
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To: AppyPappy

Very true. No shortage of people from that area going to NRCC, and I’m sure the state makes for a good paying tenant! A win-win.... As opposed to having empty retail space just sitting there.


95 posted on 01/06/2015 11:30:17 AM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Responsibility2nd

Dead Malls WAS a great site.

I say WAS because it seems it has rarely been updated since around 2009.


96 posted on 01/06/2015 12:01:00 PM PST by Buckeye McFrog
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To: fatnotlazy
I stay away from Pissburgh

I'm in Washington county (NOT WARSHINGTON) .. and if you get to the corner of 70 and 79 ... almost as far as the eye can see (just a little bit exaggerated) .. there is wall to wall mall.

97 posted on 01/06/2015 12:02:32 PM PST by knarf
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To: knarf

well, it depends on the situation. If you’ve got two or more malls relatively close to each other with the same selling proposition, then at least one will die — free market economics


98 posted on 01/06/2015 1:05:47 PM PST by Cronos (ObamaÂ’s dislike of Assad is not based on AssadÂ’s brutality but that he isn't a jihadi Moslem)
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To: knarf

I don’t suppose there is public transportation to Washington Mall and any of the others. That’s what saves them.


99 posted on 01/06/2015 1:07:58 PM PST by fatnotlazy
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To: fatnotlazy

Not really a presence, no.


100 posted on 01/06/2015 1:13:12 PM PST by knarf
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