Mall vacancies jump at fastest pace on record, hitting new high, as retailers cull store counts

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Mall vacancies jump at highest rate on record, hitting new high, as retailers cull shops

. ... It's almost passe now to say that we have a record vacancy rate for malls because we've been breaking that record all year."

Shopper traffic to many enclosed malls, often situated in the suburbs, has dropped steadily over the years, with Americans spending more online. This pattern was only accelerated by the global health crisis. Many of the retailers within malls, including department stores, have increasingly struggled to stay relevant with their customers.— including J.C. Penney, Neiman Marcus, Lord & Taylor, Brooks Brothers and J.Crew — file for bankruptcy protection.

. Rents for warehouse and distribution properties across the country have not turned negative, so far, during the duration of the pandemic, Calanog said. Forty-eight of the 79 U.S. metro areas that Moody's tracks suffered effective office rent declines in the first quarter. Among the hardest hit areas were Charleston, South Carolina, down 3.5% quarter over quarter; New York, down 1.8%; and San Francisco, down 1.6%.

 

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UBS also predicted the closing of many retail shops all over the world. On the good news, e-commerce or the digital economy remains steady and sky rocketing.

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