Despite recovering the classic mall market in the U.S. in 2022, experts expect the number of shopping centers to shrink further in the long term. Nick Egelanian, president of retail development company SiteWorks, believes what’s happening in the mall market is “a continuation of the last phase of a 40-year decline.” As a result of the irreversible process in 10 to 15 years, there will presumably be at most 150 to 200 of the highest-performing specialty shopping centers left in the country.
As of today, there are 116,000 shopping centers in the country. At the same time, the number of vast and iconic objects has decreased from 2,500 in the 80s of last century to 700 at present. Analysts say that traditional malls continue to become a thing of the past while compact shopping facilities in convenient locations are replacing them.
In 2021, despite the next wave of bankruptcies in retail and the rapid growth of e-commerce, malls have survived. Mall owners continued to attract large loans that defy logic. In 2023, the market’s success will be largely determined by the economic situation. Many predict a recession, which will inevitably pull the malls to the bottom.
Anyway, in the future, in 10-15 years, it is expected that the operating indicators of the malls will constantly decrease. As a result, most facilities will be repurposed into more modern and sustainable formats.
