Posted on 04/17/2009 9:37:16 AM PDT by WVKayaker
General Growth Properties, owner of premier malls such as Tysons Galleria in McLean, filed the largest real estate bankruptcy in U.S. history Thursday, but analysts say the move is not a sign of retail Armageddon.
General Growth, like many homeowners, paid top dollar in a rush to buy properties earlier in the decade and now finds itself awash in debt with its asset values shrinking.
(Excerpt) Read more at washingtontimes.com ...
nice lighting on the underside!
I, for one, do almost all my shopping on-line, FWIW. The exceptions being groceries and gas...
An analyst and $80K will buy you a foreclosed house in Prince William county.
So will 80K and no analyst.
Former residents of one bedroom there!
Another contribution to the toxic asset ash heap.
/sarc
how's that 'change' for ya?
you voted for it (link)... enjoy!
Thi$ i$ the “highend” mall. Tyson’s II is more popular, it would pack if there were a nuclear war.
.
libtards really shouldn't be allowed to vote.
it's only a matter of time before they start vilifying the local republicans for not going out of business... because they practiced common sense in business and in life
One suspects that it is more mismanagement than just the economy. They have some great locations but their properties tend to decay rapidly.
Tyson’s isn’t that bad and their newer malls like the one in Columbia, MD are very nice.
Older malls though, like the Dallas Galleria or Willowbrook in Wayne, NJ all have technical infrastructure issues that sometimes impact business. Riser management is a problem at all the older facilities (they don’t seem to do any) and after a while phone and data service become problematical and businesses located there spend more money on technical maintenance and coping with things like POS system down time. Then there is Ala Moana in Hawaii. It’s an old mall they GGP bought and have made ho improvements to that I can see.
It is in a class by itself when it comes to dealing with mall management and the infrastructure from phone wiring to plumbing is rotting.
Here's my vote for his replacement! Link
My replacement for Zero is Sarah Palin.
The “mall” will go the way of the all purpose stores (e.g., Marshall Fields) that sold everything from fishing rods to furs. This recession is just speeding the process along.
BTW, 90+% of my (non-food) shopping has been done by catalog or on line for the last 7-8 years. I cannot see wasting my time at bricks& mortar stores.
Before I shed any sympathetic tears I want to know what this mall owner’s policy is on CCW carrying in their malls. This is a major danger issue in some states. Any freeper know?
Their properties in Tucson are doing really well, mostly full, had some anchor meltdown which probably hurts but still most of the spots are rented. I read they’ve had 3 properties in Las Vegas on the market for years with no takers. If they don’t have the corporation structured right stuff like that can drag a company down hard, need to be able to cut off the losers.
They have $25B in debt, against $27B in assets.
Problem is, their balloon is about to come due, and nobody is lending.
Having a few malls you can’t sell sets you up for that. Smart companies spread that wide compartmentalize, they become multiple companies with linkages, that way if one section (like the Vegas malls) is failing it doesn’t drag down the whole boat.
I’m not a big mall-goer, but I’ve been struck in the last decade or so by the huge renovations and/or expansions of some malls that are entirely geared to very inflexible “upscaling”. While it’s sensible business practice to put more emphasis on high-end retail during boom times, any first-year B-school student should be able to see that the investment horizon for these huge mall renovations/expansions is obviously much longer than any single boom period, and yet there doesn’t seem to be any meaningful flexibility built in to cost-effectively downscale the mall during recessionary periods.
One of the twin malls at King of Prussia had a whole section added with a giant Nordstrom’s. The Nordstrom’s section is configured pretty inflexibly, so it would be hard to turn it into anything other than a single, huge department store, set up as a primary, purposeful destination for shoppers. If it was broken up into smaller stores, they would be so out of the way that most window-shopping passers-by would never see them.
Yep - uncontrolled expansion, lack of risk analysis...
And phhhhhhht, $27B out the window.
Sounds like the FedGov...thanks Timmy G
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