Are mall REITs dead?

Are malls Dead 2021?

On average, the U.S. shopping mall management industry declined 4.4% between 2016 and 2021, according to data from IBISWorld, a market research company. But the recent surge in mall visits might not be only temporary as people break out of lockdown.

Are retail malls dead?

About 20% of 1,000 US malls will close or go through a “major repurposing,” but “the American mall is not, in fact, dead,” according to a new analysis from Moody’s Analytics. Moody’s predicts that one-fifth of American malls will either be renovated, repurposed, or razed to make way for new properties.

What is a mall REIT?

A “Mall REIT” invests specifically in shopping malls. For investors interested in this asset class, the benefits include liquidity, diversification, and income. The risks include changing markets, interest rates, and tax rules.

Do malls still exist?

There are roughly 380 C- and D-rated malls in the U.S., according to an analysis by the commercial real estate firm Green Street Advisors. It has said malls rated C and below “are not viable retail centers long term.”

Why is Starbucks closing in malls?

Closing mall kiosks is part of Starbucks’ strategy of investing more in drive-thru and pickup locations. Last summer, Starbucks announced it would close 400 US stores to “strategically optimize” its portfolio, with the greatest changes in urban markets.

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Is retail dying 2020?

Lockdowns and major changes in consumer behavior throughout the COVID-19 pandemic threatened the survival of many retailers. More than 12,200 major retail chain store locations permanently closed in 2020 alone, translating to 159 million square feet of emptied retail space.

Is retail Dead 2020?

A study from market research firm, Statista, revealed that the US retail sector saw a shocking 34.5% decrease in overall shopper volume from May 2019 to October 2020.

Will malls go extinct?

The number of malls peaked in the 1990s at around 1,500. … A report from Credit Suisse last year predicted that 25% of the remaining malls will be bankrupt by the end of 2022. A shuttered mall can be an eyesore for the community for many years because it takes so much money to redevelop the space.

Are retail REITs good investments?

This, combined with high dividends, means a REIT can be an excellent total return investment. … A REIT tends to hold its value better than stocks during tough economies, and it’s a great way to add steady, predictable income. These are just two factors that help offset the inherent risk of an all-stock portfolio.

Are shopping centers a good investment?

The benefits of investing in a shopping center include reliable income, favorable tax treatment, simplicity, and lower levels of risk when high quality tenants are chosen. Potential risks include market risks, credit risks, and the high cost of maintenance.