Sawgrass Mills (Credit: Ruth Hara via Flickr)
The traditional American shopping mall may not be the retail powerhouse it once was, but the best properties in the sector are still delivering for tenants and landlords across the country.
The 10 most valuable malls owned by REITs — which includes the Sawgrass Mills in Miami — are generating between $960 and $1,450 in sales per square foot, and are worth billions, research firm Boenning & Scattergood told CNBC.
The top 10 malls in the U.S. include four locations in the Northeast. Two are in New York state, one is in New Jersey, and another is in Pennsylvania. The Ala Moana Center in Honolulu tops the list. The 55-year-old open-air mall brings in $1,450 per-square-foot and is worth $5.7 billion. General Growth Properties the Ala Moana Center, along with two more in the top 10.
But those are clearly outliers, in a sector that has been decimated by the likes of Amazon and other ecommerce retailers. Industry experts say 25 percent of U.S. malls will likely shutter in the next five years, or about “300 out of 1,100” that now exist, according to a recent report in CNN Money.
Simon Property Group, the country’s largest mall owner, leads the pack with five in the top 10. Those include the Sawgrass Mills in Miami, which is the second most valuable mall in the country. The Sawgrass Mills brings in $1,149 per-square-foot and worth a total of $4.1 billion.
The others on Simon’s list are: Roosevelt Field Mall in Garden City, New York; the King of Prussia Mall in King of Prussia, Pennsylvania, the Forum Shops at Caesars in Las Vegas; and the Woodbury Commons Premium Outlets in Central Valley, New York. [CNBC] – Dennis Lynch
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