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November 2017   Volume 43, Number 11      
 

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Malls Need New Business Model Says CBRE Report

The traditional U.S. shopping mall business is in need of a significant revamp if it is expected to survive, according to a CBRE report.

The real estate research firm said malls need to shift from anchor department stores and smaller accessory and apparel chains — which take an average of 79% of leasable mall space combined — to include businesses that do not experience as much competition from e-commerce, such as restaurants, beauty outlets, and home furnishing stores.

In addition, today’s consumers, namely millennials, are looking for experiences they can’t get from purchasing merchandise online when they venture out to shopping malls. That’s why malls and even grocery stores with additional features are popping up more frequently.

Still, lease agreements can be as long as 10 years and often require the approval of department stores in order for major physical changes to be made to the mall itself.

Several malls that exemplify this shift are currently being developed in N.J., Miami, Fla. and Atlanta, Ga. However, retail innovations do not always have to be elaborate to draw in shoppers. Many establishments are also being designed to meet a social need in the community in addition to being a place to buy necessities.

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In this issue:

The 5 Hottest Hipster Real Estate Markets Across America

Could DACA Repeal Impact Real Estate?

Houston Rethinks Real Estate Development After Harvey

Hurricane Irma Not Likely to Affect Florida Real Estate Prices

NAR Forced MLS Membership Up for Review

REIT Investors Look to Alternative Property Sectors for Bigger Returns

Berkshire’s HomeServices of America Acquires Long & Foster

Harvey Victims Facing Temporary Housing Shortage in Houston

Malls Need New Business Model Says CBRE Report

The End of Facebook for Real Estate?

 


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