Badly Located Malls Remain Vulnerable
A suburban migration in part related to the pandemic may benefit some malls, but already weak malls in less populated areas continue to “report sharply weaker tenant occupancy,” according to a report this week from S&P Global Market Intelligence. Three REITs recently in bankruptcy (CBL & Associates and PREIT, which filed last year, and Washington Prime Group, which filed last month) remain vulnerable due to high debt ratios and locations in less populated areas, S&P researchers noted. The loss of anchors like Sears and J.C. Penney are well-documented stresses on these B and C malls, which represent nearly a third of all U.S. malls, per the report. But declines in sales per square foot at inline tenants are also a factor, with $350 or below a danger zone, S&P said. Read more at Retail Dive.
