- 10% Entertainment
In addition to the shift in users, Seritage also notes that while Sears was paying roughly $4.40 PSF, these new users are re-leasing the spaces at nearly 4.5 times that rental rate. So, we’re seeing signs of significant value-add opportunities in some of these store closures.
So, while there will definitely be more department stores that will continue to close, that doesn’t mean malls will go the way of some of these retailers. Creative uses and the emergence of new users and concepts will ensure that malls aren’t going to die, but evolve.