Shopping Mall Management in the US Industry Market Research Report Now Available from IBISWorld

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As retailers went out of business or closed underperforming stores during the recession, vacancy rates at shopping malls increased and caused revenue to decline. As the economy improves, retailers will increase their store locations. As a result, industry operators will raise rental prices, allowing them to boost their revenue. For these reasons, industry research firm IBISWorld has added a report on the Shopping Mall Management industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Operators will increase rental prices to boost revenue as retailers expand store locations

In the five years to 2012, IBISWorld estimates that revenue for the Shopping Mall Management industry has declined at an annualized rate of 2.0% to $21.7 billion. Industry operators were threatened by the recession, which caused many retailers to go out of business and increased vacancy rates. This factor ultimately pushed rental prices down, further contributing to revenue reductions from 2008 to 2010. However, the industry has started to benefit from slow improvement in the general economy. According to IBISWorld industry analyst Kevin Culbert, an increase in disposable income has caused foot traffic to increase in shopping malls — a factor that has contributed to a decline in vacancy rates. The National Association of Realtors estimates that the retail vacancy rate will fall to 11.2% in 2012, down from 12.5% in 2011. This factor will is expected to cause industry revenue to increase 3.0% in 2012. The Shopping Mall Management industry has experienced consistent consolidation. In the five years to 2012, IBISWorld estimates that the number of firms operating in the industry has declined at an annualized rate of 2.8% to 8,109. Industry consolidation, which has contributed to a general increase in industry profit margins, has largely occurred due to the dominance of real estate investment trusts (REITs).

The Shopping Mall Management industry has a moderate level of concentration. In 2012, the top firms include Simon Property Group, General Growth Properties Inc., Westfield CBL & Associates Properties. Concentration has increased as companies continue to acquire and merge with other firms in the industry. For example, major industry operators have performed a number of acquisitions over the past five years. These entities have diversified their businesses by expanding operations through corporate acquisitions and property purchases. Additionally, larger businesses generally raise capital more efficiently than smaller, independently owned businesses. Likewise, industry participants have consolidated operations in an attempt to improve their ability to raise capital, says Culbert.

IBISWorld estimates that industry revenue will increase in the five years to 2017. During that time, the industry will benefit from growth in disposable income, which will bring more foot traffic into malls. Retailers that delayed potential new store openings and shut down underperforming centers during the recession will once again pursue expansion. As vacancy rates continue to fall, rental prices will increase and contribute to further revenue growth. In spite of a return to growth, industry operators will continue to deal with a changing retail landscape. Traditional malls have increasingly had to deal with more consumers shopping online. In order to attract more foot traffic, more malls are expected to be converted into lifestyle centers, which typically incorporate living centers, restaurants and outdoor space. Nevertheless, the high cost of lifestyle centers will limit their development to affluent areas, ensuring the relevance of traditional malls over the next five years. For more information, visit IBISWorld’s Shopping Mall Management in the US industry report page.

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IBISWorld industry Report Key Topics

This industry develops and manages shopping malls and other retail properties. Property management responsibilities involve the overall operation of the real estate asset, including leasing, maintenance, rent collection and security.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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