Closeout sale: Online shopping is expected to drive brick-and-mortar retailers out of malls, reducing the number of tenants for operators
Shopping mall management servicers consist of companies that develop, lease, maintain, repair and secure large commercial property in exchange for rental payments from retailers and businesses. For operators, rental income generates the largest portion of industry revenue with income from property management fees following. Accordingly, revenue primarily fluctuates in line with rental rates and occupancy levels. Through the end of 2023, growth in household earnings has boosted demand for retail space rental and food service space rental from businesses. However, this growth is offset by a growing popularity of online-based retailers such as Amazon.com Inc. The impact of COVID-19 in early 2020 significantly reduced revenue as nonessential businesses were ordered to close amid the pandemic. Industry revenue has been falling at a CAGR of 4.8% over the past five years, and is expected to reach $19.9 billion through the end of 2023. This includes a 0.5% slip in 2023 alone.
Shopping mall management servicers develop and manage shopping malls and other retail properties. Property management responsibilities involve the daily operation of the real estate asset, including leasing, maintenance, rent collection, trash removal, security and occasional repairs and renovations.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Simon Property Group, inc.
- Brookfield Property Reit inc.
- Kimco Realty Corp
Methodology
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