Down the road, Trepp says attention is turning to mall loans. “Since middle-market department stores have generally gone out of style, the class-B or lower malls that they tend to anchor have become obsolete,” according to Trepp. “On the other hand, class A malls boast record high occupancy levels and rents, as well as waiting lists of new tenants that want to lease their retail space.”

Citing research from Chilton Capital Management, Trepp points out that many class A malls are now surrounded by high-end residential, hotel and office properties that further enhance the mall experience. “Developers and owners have also been proactively investing large sums of capital to enhance the physical layout of class A malls that will improve the shopping experience, adding more dining and entertainment options, and diversifying tenant bases,' says Trepp.

Trepp notes that as much as 15% of existing mall supply is likely to close or be repurposed over the next decade. The lion's share of that surplus, though, derives from class B and C assets.

“On the positive side, it appears that consumers still favor class A malls, as well as specialty and freestanding retail shops,” says Trepp. The downfall of department stores and other struggling big-box retailers will continue make space for the rise of newer, more digitally-adept retailers and ecommerce's growing market share. The new slew of retailers that will succeed in the digital age will likely be characterized by fast production times, strong digital platforms, competitive last-mile delivery services and experiential aspects within their brick-and-mortar presence.”