When the conversation turns to plunging commercial real estate values, the focus usually is on older urban office buildings that have had their occupancy levels hollowed out by hybrid work patterns.
But the picture for older, low-end indoor malls is just as grim: a lot of these 1980s-era shopping meccas now are worth at least 50% and, in some cases, more than 70% less than they were when mall valuations peaked in 2016, according to a report this week in the Wall Street Journal.
Shopping habits have changed, not just from the rise of online shopping, but from what we expect from our neighborhoods in the emerging post-pandemic economy—and from the malls themselves, the most successful of which are being converted into experiential retail villages with residents as well as walkable restaurants, stores and shops.
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