Malls that buckled due to e-commerce or suffered during the pandemic are being given new life by the very entity that precipitated their decline — Amazon…Over the last several months, the retail giant has gone on a shopping spree of its own, buying up disused malls across the country and turning them into distribution centers.
Between 2016 and 2019, Amazon converted around 25 shopping malls … “The reality is that the cash flow at these lower-quality malls is declining rapidly,” said Vince Tibone, lead retail and industrial analyst at the real estate analytics firm Green Street. “You have to decide, ‘Do I want to do something myself to invest a lot of money to transform this dead retail into thriving retail or put up offices?’ Selling a dead mall as land is a more attractive option.”
Poisonally, I think the GOUSA is facing a tough economic forecast … for individual cities and towns that don’t figure out what to do with dead malls. Online shopping and the pandemic have pushed lots of diminishing-margin businesses to the wall. My wife and I still shop groceries, week by week, over a range including several stores. A couple of heavies like Walmart or Target, smaller stores like Sprouts or Trader Joe’s. That’s what fits the budget of a couple of retirees.