OFR Brief Examines Declines of Regional Malls

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August 24, 2023

Work-from-Home and the Future Consolidation of the U.S. Commercial Real Estate Office Sector: The Decline of Regional Malls May Provide Insight

Authors: Tom Doolittle and Arthur Fliegelman

To assess the likelihood and potential extent of a CRE office sector consolidation, a new OFR brief examines another CRE sector that has suffered decline and restructuring due to changes in user preferences: regional malls. Once a ubiquitous fixture of American life, regional malls in the U.S. have declined in number by one-quarter, and no new regional mall have been built in nine years.

Additionally, this brief analyzes the timing and recognition of financial losses in the office sector that would likely occur should work-from-home become permanent and marginal office properties become structurally vacant and require repurposing.

Read the brief

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