Jeff Yastine Talks About The “Death Of Retail”

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     Many experts have written about the Great Mall-pocalypse of 2017. The theory focuses on the ‘death of retail’ that claims that the United State retail business will be transformed from brick and mortar retail outlets to online retail business. The transformation will see the composition of traffic in the United States greatly change from personal cars to UPS freight vans. The UPS vans should be seen crisscrossing every available road, as they try to deliver goods to consumers in each corner of the United States.

However, this prediction will not be realized any time soon. Notably, big money is moving into the retail mall industry. This shows the strong investor confidence in the sector and an indication that the brick & mortar retail outlets will continue to operate as going concerns. One of the recent big monies that have moved into the industry is Brookfield Property Partners LP. The investment company offered $14.8 billion for the mall. According to the deal, the company estimates that the value of each of the company’s shares would be $23. The deal will see Brookfield Property Partners increase its ownership of the mall from 33 percent to 100 percent. Following the offer, the share prices of the company has soared by over 18 percent in just five trading sessions.

Brookfield’s investment is not driven by traffic, as the number of people shopping from the malls has reduced. This is because retail assets drive their investments. The mall’s real-estate assets have continued to gain in value despite of the dwindling retail business. According to Brookfield, these assets can be used to open new revenue generation streams.

Another firm with key interest on malls is Miller Value Partners. Recently, the investment company acquired two mall-based REITs. The acquisitions have seen CBL Properties and Washington Prime Group join the company. Bill Miller, an infamous mutual fund manager, is the founder of the company. Warren Buffet is also increasing his stakes in the retail mall industry through Berkshire Hathaway. Recently, the company bought stakes in Seritage Growth Properties. It is also involved in the redevelopment of the dead Sears store outlets.

Jeff Yastine

Jeff Yastine is an editorial director at. He is also the editor of Total Wealth Insider, a magazine published by Banyan Hill Publishing. Jeff joined the company in 2015 after years of working as a financial journalist. In addition, he has two decades of experience in stock market investing. In 2002, the journalist won the New York Society of Certified Public Accountants’ Excellence in Financial Journalism Award.