Comments on: Why Don’t Strip Malls Have Vacant Storefronts

By: David Sucher

David Sucher — Sat, 04 Sep 2010 04:27:25 +0000

1. It is not true — strip malls do have vacancies. So do urban main streets.

2. Why don’t all you smart guys ask a real estate broker?

By: RickRussellTX

RickRussellTX — Tue, 01 Sep 2009 20:35:53 +0000

“Typically its worth for the mall owner to take a hit on one store if he can make it up in higher rents for the others.”

An interesting side effect is that malls often devote some space to non-paying customers, like a community theater, the local model railroad club, or an activity space for local charities. The visitors who flock to the free attractions buy coffee and cookies and buy things on impulse just like everybody else, so it’s a win-win for the mall owner.

By: Malls, Stores And Distress: What Does An Empty Store Mean? « Around The Sphere

Tue, 01 Sep 2009 15:55:57 +0000

[...] Karl Smith: The difference is that a mall has a single owner who internalizes all of the externalites associated with vacant storefronts (and trash and crime, etc). An ugly mall is a less popular mall and thus commands lower rents overall. Typically its worth for the mall owner to take a hit on one store if he can make it up in higher rents for the others. This, of course breaks down when demand for the whole mall declines. [...]

By: TGGP

TGGP — Tue, 01 Sep 2009 15:03:40 +0000

Stringham uses the term "vertically integrated proprietary community".

By: Matthew Yglesias » Why Strip Malls Don’t Have Empty Storefronts

Matthew Yglesias » Why Strip Malls Don’t Have Empty Storefronts — Tue, 01 Sep 2009 14:43:31 +0000

[...] to clear, you so rarely see vacant storefronts in strip malls. Now via Felix Salmon, I see a highly plausible explanation from Karl Smith: The difference is that a mall has a single owner who internalizes all of the [...]