OldNavySailor

Ghost Malls: Coming to Your Town

Jim,

What about the impact on tax revenues for local municipalities? I assume governments still collect property taxes even though the occupancy rate for malls, shopping centers, professional complexes, etc. have fallen.

Are there any statistics showing the potential loss of property tax income if these developers go bankrupt?


On Jan 21 08:39 AM Jim Quinn wrote:

> I'm not assuming every retailer goes broke. I'm also not assuming
> every mall becomes a ghost town. I said in the article, that the
> malls in the outer suburbs are most in danger. There are 1,100 major
> malls in the country. Many were developed on a false demand premise.
> If expected demand was overestimated by 20% (very likely), then many
> retailers overexpanded and will have to close underperforming stores,
> even if they don't go bankrupt. The Mall of America and King of Prussia
> mall will be OK. The marginal malls (there are many) will go dark.
> Of those 1,100 malls, 100 to 200 will go dark in my estimation.

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> On Jan 21 08:31 AM battman wrote: