--- title: Malls have long been losing steam, but it’s worse than we thought - The Hustle description: Shopping malls have lost ⅓ of their value in the last 4 years, and could face extinction soon. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1564736152-News-Brief_2021-12-13T034210.304Z.webp --- # Malls have long been losing steam, but it’s worse than we thought ![Rob Litterst](https://thehustle.co/wp-content/uploads/2023/01/Rob-Litterst-pic.png?width=48&height=48&name=Rob-Litterst-pic.png) [Rob Litterst](https://hs-sbup.thehustle.co/author/rob-litterst) [Rob Litterst Twitter profile ](https://twitter.com/robbylit) Published: December 13, 2021 Updated: October 11, 2023 *(Source: Getty Images/fanjianhua)* ![Malls have long been losing steam, but it’s worse than we thought](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/1564736152-News-Brief_2021-12-13T034210.304Z.webp?width=595&height=400&name=1564736152-News-Brief_2021-12-13T034210.304Z.webp) Shopping malls were once the go-to place for American teenagers to cause trouble hang with friends. While mall traffic has been [declining](https://seekingalpha.com/article/2103683-declining-foot-traffic-at-malls-a-challenge-for-retailing) for years, recent valuations paint an ominous picture for the future. In the last 4 years, American malls have [lost](https://therealdeal-com.cdn.ampproject.org/c/s/therealdeal.com/2021/12/08/us-mall-values-plummeted-one-third-in-4-years/amp/?mc_cid=bc9c250972&mc_eid=237fc93370&utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202021-12-10%20Retail%20Dive%20Newsletter%20%5Bissue:38547%5D&utm_term=Retail%20Dive) **⅓ of their value**, per *The Real Deal*. #### **One reason is department store closures** Department stores often take on the role of “anchor properties,” or the largest, most prominent stores at a shopping mall. JCPenney and Macy’s, 2 of the most common anchor tenants, have [shuttered](https://www.cnbc.com/2021/01/26/top-tier-mall-values-have-dropped-45percent-from-2016-levels-green-street.html) hundreds of stores since the start of the pandemic. While this is a problem on its own, department store closures create 2 big problems for mall owners: - Some malls offer co-tenancy clauses, which allow other retailers to get reduced rent if there are 2+ anchor property vacancies. - Department store closures lead to less foot traffic for all retailers, which can accelerate other store closures. This downward spiral affects everyone, even the biggest players. Case in point, 3 of the biggest mall landlords declared bankruptcy during the pandemic. #### **Not all malls are hurting** Strip malls have seen values pop **13%** since the start of the pandemic. But good luck finding a strip mall with the killer combo of Hot Topic, Claire’s, and Auntie Anne’s pretzels. Topics: [Shopping](https://hs-sbup.thehustle.co/tag/shopping) ## Follow us on social media prev next - ![Why isn’t shopping fun anymore?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/967980288-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-Shopping_20230830222856.webp) ### Why isn’t shopping fun anymore? - ![Wealthier Americans are splurging — at dollar stores](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/586670054-httpsthdaily.s3.us-west-1.amazonaws.comfinal_size-Dollar-Store_20230713214704.webp) ### Wealthier Americans are splurging — at dollar stores - ![The future of groceries is… groceries?](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/780967302-HS-News-Brief_2022-09-19T223037.819Z.webp) ### The future of groceries is… groceries? - ![By the numbers: Home depot, productivity tracking, mountain treasure, and more](https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1191152769-News-Brief_2021-12-13T034558.724Z.webp) ### By the numbers: Home depot, productivity tracking, mountain treasure, and more Pop up for Subscribe to The Hustle Daily Newsletter Subscribe to The Hustle Daily Newsletter Get the 5-minute news brief keeping 2.5M+ innovators in the loop. 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