Why Some Shopping Malls May Be in Deeper Trouble Than You Think

  • Smaller stores quietly not renewing leases, Green Street says
  • Anchors generate less landlord revenue than in-line tenants
Bloomberg Gadfly’s Sarah Halzack explains what department stores need to do to survive. (Source: Bloomberg)
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The damage inflicted on America’s malls by the rise of e-commerce may be worse than it appears.

As embattled retailers announce store closures at a record pace, some tenants are shrinking their footprints more quietly by choosing not to renew expiring leases, according to a report from property-research firm Green Street Advisors LLC. Of 2,468 in-line stores that closed in 2017 -- a category that excludes department stores -- 979 weren’t announced, the report produced by the firm’s advisory and consulting group shows.