Business News

The 10 Most Useful Malls in America Earlier than the Corona Virus Pandemic

People are seen walking through the Roosevelt Field mall in Garden City, New York.

Shannon Stapleton | Reuters

Before the corona virus appeared, America's most valuable shopping centers had annual sales of several billion US dollars and contributed hundreds of millions of US dollars to local tax offices.

Now no one knows how these numbers will emerge from the Covid 19 crisis – apart from the fact that they are definitely much less.

The shopping centers were temporarily closed in March to curb the spread of the virus. In some states, such as New York, shopping centers have still not been able to fully reopen. For example, Governor Andrew Cuomo said that New York malls need high-quality air systems that can filter out the coronavirus before opening their doors.

In the meantime, many shoppers are reluctant to return to the shopping centers after staying home and practicing social distancing. And some smaller shops and entertainment venues like cinemas won't reopen right away, even if the mall is open again and department store lights are on.

Macy's chief executive, Jeff Gennette, said during a conference call earlier this week, "In the open malls, many of the other stores and services remain closed. This affects our business."

Some companies are starting to close their doors in shopping malls for the second time as more cases of Covid-19 occur in parts of the country. Apple is closing dozens of stores in states like Florida and South Carolina. And Microsoft has announced that it will close all brick-and-mortar stores and run the business 100% online.

All of this means trouble for America's malls, even for the best of the best.

An analysis by independent investment firm Compass Point found that the top 30 shopping malls in the U.S. were over $ 57 billion in value based on tenants' annual sales and underlying real estate, and the U.S. estimated $ 1.8 billion -Dollars contributed to annual tax revenue. before Covid-19.

"The pandemic will have a significant impact on tenant sales and taxation, as the government shutdown we expect could cut sales this year by up to 33%," said Floris van Dijkum, an analyst at Compass Point. "Lower government tax revenues are likely to put pressure on budgets and cut services."

CNBC previously reported the impact this could have on communities dependent on their shopping centers to fund schools and police infrastructure, among other things.

The consequences are unpaid bills from some mall owners who cannot pay their own bills. CBL & Associates, based in Tennessee, has skipped two interest payments and has entered into an indulgence phase with its lenders. The Mall of America has failed to pay its mortgage.

"The financial profile of many (mall) tenants has been damaged and will remain so for a while," said Neill Kelly, head of restructuring the commercial real estate services company CBRE in North America.

Two of the largest U.S. mall owners, Simon Property Group and Brookfield, top the list of top malls and operate several of these properties. Some of them are located at current Covid-19 hotspots, including Texas and Florida.

Here are the top 10 most valuable malls in the country based on pre-pandemic tenant sales, as reported by Compass Point.

10. Houston Galleria

Customers ride an escalator at The Galleria mall after it opened during the Coronavirus Disease (COVID-19) outbreak in Houston, Texas on May 1, 2020.

Adrees Latif | Reuters

Place: Houston
Owner:
Simon and Calpers
Annual sales:
$ 1.03 billion

9. Orlando Premium Outlets

Orlando Premium Outlets

Jeffrey Greenberg | Universal Images Group via Getty Images

Place: Orlando Florida
Owner:
Simon
Annual sales:
$ 1.06 billion

8. Roosevelt Field

People are seen walking through the Roosevelt Field mall in Garden City, NY.

Shannon Stapleton | Reuters

Place: Garden City, New York
Owner:
Simon
Annual sales:
$ 1.08 billion

7. Mall of America

Mall of America in Bloomington, Minnesota.

Ariana Lindquist | Bloomberg | Getty Images

Place: Bloomington, Minnesota
Owner: Triple five group
Annual sales: $ 1.26 billion

6. South Coast Plaza

Due to social distance, shoppers wear protective masks while standing in line in front of Louis Vuitton as the South Coast Plaza reopens. Customers must maintain social distance and wear face masks at South Coast Plaza on Thursday, June 11, 2020 in Costa Mesa, CA.

Allen J. Cockroaches | Los Angeles Times via Getty Images

Place: Costa Mesa, California
Owner:
The Segerstrom family
Annual sales:
$ 1.27 billion

5. Woodbury Common

On November 17, 2019, people in the Woodbury Common Premium Outlets in Central Valley, New York, walk past the shops of Vineyard Vines, Steve Madden, Fila and Columbia Sportswear Company.

Gary Hershorn | Getty Images

Place: Central Valley, New York
Owner:
Simon
Annual sales:
$ 1.3 billion

4. Aventura Mall

Atrium of the Aventura Mall.

Jeffrey Greenberg | Universal Images Group via Getty Images

Place: Aventura, Florida
Owner:
Simon and Turnberry Associates
Annual sales:
$ 1.35 billion

3. King of Prussia

A shipment of boxes is being rolled while shoppers approach Neiman Marcus on November 22, 2019 at the King of Prussia Mall in King of Prussia, Pennsylvania.

Mark Makela | Reuters

Place: King of Prussia, Pennsylvania
Owner: Simon
Annual sales: $ 1.37 billion

2. Ala Moana Center

A high school band performing on stage at the Ala Moana Center in Honolulu, Hawaii.

Jeffrey Greenberg | UIG | Getty Images

Place: Honolulu
Owner:
Brookfield and AustralianSuper
Annual sales:
$ 1.64 billion

1. Sawgrass Mill

Guests leave a life-size home, "Barbie The Dreamhouse Experience," at Sawgrass Mills Mall in Sunrise, Florida.

Amy Beth Bennett | Sun Sentinel | MCT | Getty Images

Place: Sunrise, Florida
Owner:
Simon
Annual sales:
$ 1.81 billion

Related Articles