Malled: The Hollowing Out of an American Institution. ‘We Surrender’ – Bloomberg.
Built 24 years ago by a former subsidiary of Sears Holdings Corp. (SHLD), Steeplegate is one of about 300 U.S. malls facing a choice between re-invention and oblivion. Most are middle-market shopping centers being squeezed between big-box chains catering to low-income Americans and luxury malls lavishing white-glove service on One Percenters.
It’s a time of reckoning for an industry that once expanded pell-mell across the landscape armed with the certainty that if you build it, they will come. Those days are over. Malls like Steeplegate either rethink themselves or disappear.
This summer Rouse Properties Inc. (RSE), a real estate investment trust with a long track record of turning around troubled properties, decided Steeplegate wasn’t salvageable and walked away. The mall is now in receivership.