Can Retail Withstand the Test of Time?

LAS VEGAS—When is the last time you stepped into a brand new shopping mall? It’s been nearly a century since the first shopping mall opened in the United States—U.S. construction deliveries of retail assets in 2013 were 76.6 percent below the high levels of 2008, and Q1 2014 deliveries for major markets were only 9.8 million.

The lack of new supply coupled with fluctuating consumer confidence is pushing retail real estate owners to strategically evaluate their current assets. “With limited supply, getting the environment right in existing assets has become crucial, and it’s what really creates a resilient retail center. It is the basic building block of the physical offering, and can’t be left to chance anymore,” JLL Retail’s Karen Raquet told us.