Imagine if they had spent that money on a public transit system:
A recent article in the Financial Times suggests that 15% of America’s regional malls will fail in the next five years. “The mall’s 50-year reign as the ultimate shopping destination appears to be coming to an end,” claims a report by the CoStar Group, a real estate analysis firm.
Many are failing despite significant state subsidies. A local government report found that in the St Louis metro area alone, $4.6 billion has been spent in the last 20 years subsidizing chain stores and malls, which are seen as flagships of regional development. Despite that investment, jobs growth and taxable sales have remained flat in St Louis, and two-thirds of its local governments are in fiscal stress.
According to the article, not a single mall was built in the US between 2007 and 2012. And the latest mall project, New Jersey’s Xanadu, is failing despite $1 billion in subsidies.