The JLL Q2 Retail Report has some excellent insights and breakdowns on how some malls are faring well in the changing retail climate. Savvy commercial real estate investors may find some of these strategies worthwhile to implement in their mall or retail redevelopment projects.
Also, some malls — a category that includes lifestyle centers, regional and super-regional properties — aren’t doing badly at all.
Strong malls in top locations not only have less exposure to closing retailers, but tend to fill vacant space much faster and more profitably than average properties, JLL reported.
The ease at which properties find tenants to fill vacant spaces depends on the quality of the location. The report, citing CoStar data, says that about 70% of the best locations had vacant space re-leased within a year. What is going to happen to the current wave of vacant retail space?
Three main outcomes, according to JLL: re-leasing by retailers, re-leasing by non-retailers or demolishment.