Earlier this year, I received a flurry of text messages from my mother, who was at the going-out-of-business sale at our local Macy’s. I was floored — not by the deals, but because my childhood mall, the Crystal Mall in Waterford, Conn., was losing another big-box store. Sears exited a couple of years ago, and the mall has steadily lost tenants like the Gap, H&M and Abercrombie & Fitch. My teenage self would barely recognize the place today.
Similar declines have been playing out for years at many of the roughly 1,150 enclosed malls in the U.S., as people have turned to the internet, strip-center chains and outlets. But the pandemic accelerated challenges at some malls that were previously scraping by. Now, while the country’s most popular malls continue to perform relatively well, with steady foot traffic and occupancy, hundreds of others are grappling with major vacancies, fewer visitors and uncertain futures.
More than ever, American malls are a story of haves and have-nots. The real estate analytics firm Green Street estimates that at the 1,000 U.S. malls it tracks, there are about 750 vacant anchor boxes — vast spaces that once housed chains like Sears, Nordstrom and Macy’s. Those are hard to fill in normal times, but the past year has made it extraordinarily tough.
Changing habits
The plight of malls is significant for American communities and shows how quickly our habits have changed. Many people have a deep nostalgia for their local mall — it was often a hangout spot, a source for back-to-school clothing, or the scene of a first job. An internet subculture commemorates malls that have permanently closed.
But now, many are in a strange limbo. As vaccinations rolled out, pictures circulated of people receiving their shots at empty Sears or J.C. Penney locations. One former Macy’s in Vermont has been repurposed as a high school, while other malls are auctioned for pieces and turned into corporate offices. Deborah Weinswig, chief executive of Coresight Research, a global advisory and research firm, anticipates the rise of “dark malls” that exist solely to fulfill online orders for same-day or same-hour pickup.
Most malls took a hit during last year’s pandemic shutdowns and have struggled to attract customers back to the great indoors. A slew of bankruptcies, including J.C. Penney and Brooks Brothers, fueled closures. And healthy retailers decided to shutter their least-profitable stores, causing another exodus. More than 12,000 stores were announced for closures in 2020, according to CoStar Group, a data provider for the real estate industry.
“There’s no question the pandemic really widened the gap between the higher- and lower-quality malls in the country,” Vince Tibone, a senior analyst covering retail for Green Street Advisors, told me. “For the best one or two malls in any given market, there will still be tenant demand, there will still be consumers. And then the lower end is going to be even more challenged because they lost even more of their national tenants.”
The real estate industry gives grades to malls like report cards — A++ for top-tier malls, which can make $1,000 sales per square feet and often have tenants like Apple. A “C” mall produces far less in sales, probably has low occupancy and is deemed at risk of closing. Tibone said that many malls were downgraded during the pandemic as they lost tenants.
Vacant storefronts can be an eyesore, but as I wrote last year, many small mall tenants have clauses in their leases that allow them to pay reduced rent or even leave if two or more anchor stores depart, which can further exacerbate a mall’s issues. For some malls, the vacancies represent the start of a grim spiral. Even if the owners can see what’s happening, Tibone said, they often “don’t have the capital to keep these properties relevant and progressing with the future.”
Sapna Maheshwari covers retail for The Times. She invites readers to send their thoughts on the topic to [email protected].
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The movie, which was partly funded by the Russian state, has received some criticism within Russia and Ukraine for not emphasizing the government’s missteps enough. Alexander Rodnyansky, one of the film’s producers, who as a young documentary filmmaker captured the disaster zone in the days after the catastrophe, said that was never his goal.
“For years people spoke about what really happened there,” he told The Times, adding that most people understand the government’s role in the disaster. The Russian film, instead, trains its lens on the role of individual heroism.
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If you’re in the mood to play more, find all our games here.
Thanks for spending part of your morning with The Times. See you tomorrow.
P.S. Rebecca Davis O’Brien will cover criminal justice for The Times after seven years at The Wall Street Journal.
Here’s today’s print front page.
“The Daily” is about the Taliban. On “The Ezra Klein Show,” Spencer Ackerman discusses the legacy of Sept. 11. “Popcast” is about Billie Eilish.
Claire Moses, Ian Prasad Philbrick, Tom Wright-Piersanti and Sanam Yar contributed to The Morning. You can reach the team at [email protected].
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Source: Read Full Article
Home » Analysis & Comment » The State of the American Mall
The State of the American Mall
Earlier this year, I received a flurry of text messages from my mother, who was at the going-out-of-business sale at our local Macy’s. I was floored — not by the deals, but because my childhood mall, the Crystal Mall in Waterford, Conn., was losing another big-box store. Sears exited a couple of years ago, and the mall has steadily lost tenants like the Gap, H&M and Abercrombie & Fitch. My teenage self would barely recognize the place today.
Similar declines have been playing out for years at many of the roughly 1,150 enclosed malls in the U.S., as people have turned to the internet, strip-center chains and outlets. But the pandemic accelerated challenges at some malls that were previously scraping by. Now, while the country’s most popular malls continue to perform relatively well, with steady foot traffic and occupancy, hundreds of others are grappling with major vacancies, fewer visitors and uncertain futures.
More than ever, American malls are a story of haves and have-nots. The real estate analytics firm Green Street estimates that at the 1,000 U.S. malls it tracks, there are about 750 vacant anchor boxes — vast spaces that once housed chains like Sears, Nordstrom and Macy’s. Those are hard to fill in normal times, but the past year has made it extraordinarily tough.
Changing habits
The plight of malls is significant for American communities and shows how quickly our habits have changed. Many people have a deep nostalgia for their local mall — it was often a hangout spot, a source for back-to-school clothing, or the scene of a first job. An internet subculture commemorates malls that have permanently closed.
But now, many are in a strange limbo. As vaccinations rolled out, pictures circulated of people receiving their shots at empty Sears or J.C. Penney locations. One former Macy’s in Vermont has been repurposed as a high school, while other malls are auctioned for pieces and turned into corporate offices. Deborah Weinswig, chief executive of Coresight Research, a global advisory and research firm, anticipates the rise of “dark malls” that exist solely to fulfill online orders for same-day or same-hour pickup.
Most malls took a hit during last year’s pandemic shutdowns and have struggled to attract customers back to the great indoors. A slew of bankruptcies, including J.C. Penney and Brooks Brothers, fueled closures. And healthy retailers decided to shutter their least-profitable stores, causing another exodus. More than 12,000 stores were announced for closures in 2020, according to CoStar Group, a data provider for the real estate industry.
“There’s no question the pandemic really widened the gap between the higher- and lower-quality malls in the country,” Vince Tibone, a senior analyst covering retail for Green Street Advisors, told me. “For the best one or two malls in any given market, there will still be tenant demand, there will still be consumers. And then the lower end is going to be even more challenged because they lost even more of their national tenants.”
The real estate industry gives grades to malls like report cards — A++ for top-tier malls, which can make $1,000 sales per square feet and often have tenants like Apple. A “C” mall produces far less in sales, probably has low occupancy and is deemed at risk of closing. Tibone said that many malls were downgraded during the pandemic as they lost tenants.
Vacant storefronts can be an eyesore, but as I wrote last year, many small mall tenants have clauses in their leases that allow them to pay reduced rent or even leave if two or more anchor stores depart, which can further exacerbate a mall’s issues. For some malls, the vacancies represent the start of a grim spiral. Even if the owners can see what’s happening, Tibone said, they often “don’t have the capital to keep these properties relevant and progressing with the future.”
Sapna Maheshwari covers retail for The Times. She invites readers to send their thoughts on the topic to [email protected].
THE LATEST NEWS
The Virus
For the first time since February, the U.S. is averaging more than 100,000 new cases a day. See the latest charts.
The U.S. military plans to mandate vaccinations for 1.3 million active-duty troops.
Dallas schools will require students and teachers to wear masks, defying Gov. Greg Abbott.
Covid is surging and vaccinations are lagging in Mexico.
Europe has reopened to Americans. The U.S. hasn’t reciprocated.
Politics
The Senate is planning to vote on President Biden’s bipartisan infrastructure bill at 11 a.m. Eastern. (Here’s more about what’s in it.)
Democrats unveiled a $3.5 trillion budget blueprint that would expand the social safety net.
The Biden administration said it would disclose long-classified documents that some Sept. 11 victims’ families believe could link the Saudi government to the attacks.
Climate
Smoke from California’s wildfires has made the air in Salt Lake City and Denver some of the dirtiest in the world.
Leaders of vulnerable countries are demanding that heavily polluting nations compensate them.
Temperatures could approach 100 degrees across the U.S. this week.
Severe storms caused hundreds of flight cancellations in Chicago.
Other Big Stories
A Chinese court has upheld the death penalty for Robert Lloyd Schellenberg, a Canadian convicted of drug trafficking.
Virginia Giuffre, one of Jeffrey Epstein’s accusers, said in a lawsuit that Britain’s Prince Andrew had raped her when she was 17.
The Taliban have been besieging Kandahar, Afghanistan’s second largest city, for a month. Residents have nowhere to go.
Roberta Kaplan resigned as the chairwoman of the anti-harassment group Time’s Up after helping Gov. Andrew Cuomo try to discredit an accuser.
Government incentives to buy electric vehicles mostly help the affluent, not average families.
Opinions
Covid vaccines for kids cannot wait, Michelle Goldberg argues.
The pandemic changed restaurants forever. Good, the chef Peter Hoffman writes.
MORNING READS
Charles Loeb: The Black reporter who exposed a government lie about the atom bomb …
“Atomic Bill”: … And the celebrated Times writer who got paid to publish propaganda.
Letter of recommendation: “I would rather floss than shop.”
A Times classic: How parenting became relentless.
Lives Lived: Jane Withers played tough, tomboyish children in more than two dozen films in the 1930s and ’40s. She achieved a second burst of fame as Josephine the Plumber in Comet cleanser commercials. Withers died at 95.
ARTS AND IDEAS
A Russian view of Chernobyl
Two years after HBO aired its critically acclaimed series “Chernobyl,” the Russian film “Chernobyl 1986” has arrived on Netflix. While the HBO series focused on the failures of the Soviet system that led to the nuclear plant’s explosion, the movie on Netflix follows the lives of “liquidators” — people who prevented the fire from spreading to the other reactors and helped avoid an even larger disaster.
The movie, which was partly funded by the Russian state, has received some criticism within Russia and Ukraine for not emphasizing the government’s missteps enough. Alexander Rodnyansky, one of the film’s producers, who as a young documentary filmmaker captured the disaster zone in the days after the catastrophe, said that was never his goal.
“For years people spoke about what really happened there,” he told The Times, adding that most people understand the government’s role in the disaster. The Russian film, instead, trains its lens on the role of individual heroism.
Today, the power plant site has fewer than 2,000 workers who monitor a giant sarcophagus that ensures no nuclear waste is released, Valerie Hopkins writes. Read her story. — Sanam Yar, a Morning writer
PLAY, WATCH, EAT
What to Cook
This plantain recipe is based on “tomato eggs,” a popular dish across West Africa.
What to Listen to
As live music shows amped up again, a critic booked six weeks of concerts in honky-tonks, clubs and arenas. Here’s what he saw.
What to Watch
A Swedish space probe, a self-reflective time-travel comedy and other sci-fi movie picks worth streaming.
Personal Essays
In 2003, Jay-Z’s “The Black Album” — and its overriding message of individual success — was the pop culture reporter Reggie Ugwu’s anthem. That’s changed.
Late Night
Stephen Colbert talked about Barack Obama’s birthday party.
Now Time to Play
The pangram from yesterday’s Spelling Bee were autocracy and carryout. Here is today’s puzzle — or you can play online.
Here’s today’s Mini Crossword, and a clue: Ctrl-___-Del (three letters).
If you’re in the mood to play more, find all our games here.
Thanks for spending part of your morning with The Times. See you tomorrow.
P.S. Rebecca Davis O’Brien will cover criminal justice for The Times after seven years at The Wall Street Journal.
Here’s today’s print front page.
“The Daily” is about the Taliban. On “The Ezra Klein Show,” Spencer Ackerman discusses the legacy of Sept. 11. “Popcast” is about Billie Eilish.
Claire Moses, Ian Prasad Philbrick, Tom Wright-Piersanti and Sanam Yar contributed to The Morning. You can reach the team at [email protected].
Sign up here to get this newsletter in your inbox.
Source: Read Full Article