As More US Retailers Fail, Malls Could Be Next Victim

CNBC ^ | 12/30/2008 | Staff

[Red in Blue PA]

The dismal holiday shopping season may sink some retailers and could take down some U.S. malls struggling with rising vacancies, softening rents and their own large debt loads.

"This is probably going to go down as the worst season in history as far as retail sales," said Victor Calanog, director of research for real estate research firm Reis. "The difficulty of ascertaining what the effect would be at the property level is because we're already heading toward a train wreck."

At the end of the October, the International Council of Shopping Centers (ICSC) forecast that national chains would announce 6,100 store closings in 2008 and 3,100 in the first half of 2009.

[HEY4QDEMS]

If this keeps up, we’ll be reduced to a “guns and butter” economy before we know it.

Should I start hoarding food?

[RexBeach]

Malls are a ready in trouble.

Here’s one for you: The Inner Harbor Development in Baltimore is for sale, as the owner is trying to get it off the books to avoid bankruptcy.

The same outfit owns Tysons Galleria in McLean, Va.

2009 is going to be another messy year.

[VeniVidiVici]

The mall parking lots around here were ghost towns before Christmas. Even Best Buy, usually packed before Christmas, didn’t have their “snake lines” setup for customers waiting for the register.

Now, the day AFTER Christmas, the mall was packed. Every spot was taken and some made their own spots. Never seen that before.

[kaylar]

I know I bought virtually every present this Christmas online-using comparison shopping and online discount codes. Hitting the malls is sooooo ‘80s.

[HEY4QDEMS]

I was in Vienna VA two weeks ago and I went to Tyson’s.

It is an amazing mall. I was impressed.

[weef]

The International Council of Shopping Centers??? Sheesh, I need to create me a useless council or organization and start charging some dues.

[WhyisaTexasgirlinPA]

The heat is bad for shopping - which is why I have been stunned at the new trend in shopping in the south - the open air "mall" with fountains and parking at the door of shops. Jacksonville Florida has a really nice open air mall and Sugar Land built one in recent years....There is a big new outlet mall in northwest houston area that is all outdoor.

I have heard the gang problem (are middle schoolers considered a gang as well?) in malls has prompted this new/old style of shopping.

[Tribune7]

Or a third Dawn of the Dead.

[meowmeow]

www.deadmalls.com

[Red in Blue PA]

Agree. A country which relies on Service industries for 2/3’s of GNP can only go on for so long.

Real products need to be produced.

[Clintons Are White Trash]

The malls in St. Louis were insanely crowded this holiday season. I don’t see what they are talking about. Have any hard numbers actually come out?

[verity]

I could not agree more.

[Global2010]

Yes. I can see your need.
Living in a cool rain forrest climate for decades I forget how unbearable the heat can be.

Maybe a mall that has interactive type activities that are interesting enough for return visits.

A Marine Sci Center, gem and mineral show type store that is interactive add a Freeper Cafe indoor swimming center ect ect and Flip that Mall. : o

[blam]

"Should I start hoarding food?"

Meltdown To Hit Agriculture, Food Shortage Looms

"NEW DELHI: As if the global meltdown and soaring food prices are not enough, now brace up for food shortage in the coming two years."

[xjcsa]

Could the fact that auto theft from malls has increased to levels never even dreamed of, and maybe people don't want to be confronted with Gang Bangers while shopping?

Geez, what kind of hellhole do you live in?

[wbill]

I went to an outlet mall here in NC, the Saturday afternoon before XMas. Parked right in front, there weren't more than a dozen or so cars in the lot.

The people inside were *buying*....not shopping...but there weren't many of them.

I also hit a local Target the weekend after XMas, looking for sales. Had the store to myself. Workers were just hanging around the registers talking....nothing to do.

I think that retailers are going to get hammered this year.

[EBH]

With a record amount of commercial real-estate debt coming due, some of the country’s biggest property developers have become the latest to go hat-in-hand to the government for assistance.

They’re warning policymakers that thousands of office complexes, hotels, shopping centers and other commercial buildings are headed into defaults, foreclosures and bankruptcies. The reason: according to research firm Foresight Analytics LCC, $530 billion of commercial mortgages will be coming due for refinancing in the next three years — with about $160 billion maturing in the next year. Credit, meanwhile, is practically nonexistent and cash flows from commercial property are siphoning off.

http://www.freerepublic.com/focus/f-news/2152548/posts

[demsux]

The malls in St. Louis were crowded, but people were not spending like in the past...I was there.

See my post 16

[ejonesie22]

Yikes, the economy really is causing problems...

[meyer]

The heat is bad for shopping - which is why I have been stunned at the new trend in shopping in the south - the open air "mall" with fountains and parking at the door of shops.

I've noted that new trend as well. Build a shopping center, put all kinds of planter/barricades in the parking lot to make it impossible to get around, and then call it a "mall". In my less-than-humble opinion, if it doesn't have an indoor walkway between stores, it is not a mall.

I have heard the gang problem (are middle schoolers considered a gang as well?) in malls has prompted this new/old style of shopping.

I think what's really prompting this trend is lower construction and maintenance costs. The heating/cooling of the indoor areas of a mall has to be somewhat expensive.