Sears Holding Corp., which the two companies expect to create in an $11 billion deal by the end of March, will likely close a significant amount of stores, said open-air center owners. "A lot of real estate will go on the market," said Glenn Rufrano, CEO of locally based New Plan Excel Realty Trust. "I don't think those retailers will want to stay in all of the space they have." Sears will likely open more off-mall stores in Kmart locations, and as many as 500 stores could be put up for sale, he said. But the potential sales could be good for landlords since other tenants could replace the Kmarts and pay higher rents, Rufrano said.

Daniel Hurwitz, EVP of Cleveland-based Developers Diversified Realty agreed, saying that the combine chains undertake "significant store closures." But he also said that many of the empty spaces could be in demand by many other retailers that are expanding.

The mall panel discussed the possibility of Sears leaving its mall stores to open off-mall units in former Kmart locations after the merger. Michael Glimcher, president of Columbus, OH-based mall owner Glimcher Realty Trust, pointed out that "it will be a long cumbersome, multi-year process" for Sears to go off-mall, given that 95% of its real estate is currently attached to a mall.