The New York Times offers up a fascinating look at the state of the industry. The basic idea: There is too much retail space in the United States and a lot more shopping malls will go the way of Eastland in the near future. But have no fear, SouthPark will continue to do just fine. A sample quote:
“You see the A-rated malls, the flagship malls, performing very well,” said Steven Lowy, co-chief executive of Westfield Corporation, which has its roots in Australia but is now a major global player among mall owners. In the United States, Westfield has shed properties in the Midwest while focusing on the more affluent coasts. In Europe, Mr. Lowy prefers wealthy urban centers like London and Milan.
“Our business is more regional and high-end focused,” he said. “There are gradients of dead or dying or flat, but anything that’s caught in the middle of the market is problematic.”
Tom Simmons, who oversees the mid-Atlantic shopping center division of Kimco, another real estate giant, is more blunt. “There are B and C malls in tertiary markets that are dinosaurs and will likely die,” he said, but “A malls are doing well.”
Bonus thought: Old line retailers like J.C. Penney and Sears continue to struggle. In fact, J.C. Penney just announced it’s closing another 40 stores, including one in Statesville.
