Over 50% of department stores in malls predicted to close by 2021, real estate services firm says

First, the department store closes. Then, the apparel shops try to scoot out of deals. This is a one-two punch that could trigger a wave of malls shutting for good over the next 12 months. 

More than 50% of the department stores anchoring America’s malls are going to close permanently by the end of next year, a new report from Green Street Advisors predicts. There are about 1,000 malls still open in the U.S. And roughly 60% of those have department store retailers, such as Macy’s, as anchor tenants, the commercial real estate services firm said.

•     Department stores still represent about 60% of the anchor space within malls today, according to Green Street Advisors.
  
  
•     Up until the coronavirus pandemic, it has been years of “kicking the can down the road,” analyst Vince Tibone said.
  
  
•     Green Street is forecasting more than half of the department stores anchoring America’s malls are going to close permanently by the end of next year.