Suburban malls reeling as large retailers exit

Brands are downsizing in a tough market.

Malls in the heartlands are being left in the lurch as more large retailers choose to close non-performing stores.

According to a report by JLL, suburban malls were hard-hit by the ongoing consolidation and contraction of retailers in Q3, with vacancy levels continuing to edge up.

Exits by large-space occupiers in less popular malls, such as global fashion brands and department stores, were the primary cause of higher vacancy.

"Landlords of the once-popular but apparently less prestigious malls have begun to upgrade their malls through large-scale renovation or space reconfiguration in an effort to attract more exclusive retailers and F&B tenants to shore up foot traffic," the report said.