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Here’s how America’s malls are changing

Storing malls across the U.S. have been reeling as restaurant and retail tenants struggle to keep their doors open-minded.

Data compiled by Coresight Research shows about a quarter of U.S. malls could close over the next three to five years, accelerating a veer that began before the pandemic.

Simon Property Group — the nation’s biggest mall owner — said in February that its fourth-quarter receipts dropped by 24% on a year-over-year basis to $1.1 billion.

However, some analysts think Simon — with its portfolio of A-rated malls and a beneficial balance sheet — will benefit as distressed malls operated by its rivals close their doors. The company is also needed to see gains from new additions like hotels and luxury residences.

“Unfortunately there are a lot of centers that don’t fit that prodigal profile and that have lost their competitive edge,” said Piper Sandler analyst Alexander Goldfarb. “The instrument about Simon is they’ve been really focused on maintaining it, and that’s both been through a combination of culling the disgrace productive centers as well as making sure that they keep investing in their top centers.”

Simon Assets Group CEO David Simon said the company is also getting a lift as shoppers return to its malls and from occupiers paying their rent on time after stores were able to reopen as pandemic restrictions eased.

Malls are a big tax driver for the communities they favourable to and employ lots of people locally. Watch the video above to find out more about the struggles U.S. malls turn up and what could become of them after the pandemic ends.

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