New York, NY (PRWEB) August 01, 2014
The Shopping Mall Management industry consists of companies that lease out, maintain, repair and secure retail property in exchange for rent payments from sellers of merchandise. In the five years to 2014, IBISWorld estimates that revenue for the Shopping Mall Management industry has increased at an annualized rate of 2.9% to $22.7 billion. The lingering effects of the real estate bubble and the recession that followed continued to pose challenges to industry operators over the past five years. Levels of consumer spending have only gradually increased, thereby increasing demand for retail only slightly in the years since 2009.
According to IBISWorld Industry Analyst Nick Petrillo, “As a result, retail property vacancies have been slow to recover and many retail property values remain largely below historic values.” This has been a continual problem for the industry's largest management companies; since the industry's firms depend on a steady inflow of rent payments from their managed retailers, the past five years have yielded only gradual improvements to companies' bottom lines. To mitigate the problem, management companies have aggressively negotiated joint venture agreements with other companies within the industry to generate the necessary cash to purchase these undervalued retail complexes. This strategy has paid off; IBISWorld estimates that industry revenue will increase by an additional 4.1% in 2014.
Over the five years to 2019, the industry will be poised for even stronger growth. “As improvements in the overall US economy lead to continual declines in unemployment, renewed consumer spending and increases in the overall number of businesses, IBISWorld anticipates increasing rent payments from shopping malls to generate additional annualized revenue,” says Petrillo. Declining vacancies across many major shopping malls will generate greater rent income, and the industry's concerted efforts to acquire evolving forms of shopping complexes across suburban and metropolitan regions will diversify industry holdings going forward. There is some concern, however, that online retail may potentially hinder the industry's ability to generate consistent rent over the period. As a result, industry profit may potentially stagnate over the five-year period.
For more information, visit IBISWorld’s Shopping Mall Management in the US industry report page.
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IBISWorld industry Report Key Topics
The Shopping Mall Management industry develops and manages shopping malls and other retail properties. Property management responsibilities involve the daily operation of the real estate asset, including leasing, maintenance, rent collection, trash removal, security and occasional repairs and renovations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.