Feb 2, 2019

A final humiliation for malls

Erica Pandey, author of @Work

The now-empty Landmark Mall, Alexandria, Virginia. Photo: Mark Wilson/Getty

In a twist of the knife, developers are turning defunct malls and failed big-box stores into warehouses — for e-commerce businesses, among other uses.

What's happening: Since 2016, 7.9 million square feet of U.S. retail space has been turned into warehouses, according to a new analysis from CBRE, the research firm. These redevelopment projects span the country, impacting cities in every region. But, per the report, they are especially prevalent in lower-income areas.

  • As we've reported, retail options are vanishing disproportionately in poorer parts of the country.

"We’ve got a recession coming, and that’s likely to further widen that gap," says Ellen Dunham-Jones, a Georgia Tech professor who tracks obsolete malls. "I expect we’re going to see more malls and strip malls go under."

The big picture: At 28 square feet per capita, the U.S. has 20 times more mall space than the world average, and the repurposing of dead malls goes beyond warehouses. Of the 1,000 or so malls open today, around a quarter are at risk of shuttering in the next five years, per Credit Suisse's analysis.

  • These old structures are turning into community college campuses and doctor's offices, and even Amazon is reportedly looking at turning old Sears stores into Whole Foods outlets. Amazon did not immediately respond to emails seeking comment.

Go deeper: Read the Axios special report on the future of retail

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Biden formally secures Democratic presidential nomination

Joe Biden speaks at Delaware State University's student cente on June 5. Photo: Jim Watson/AFP via Getty Images

Former Vice President Joe Biden became the formal Democratic presidential nominee on Friday evening, per AP.

The big picture: Biden has been the presumptive frontrunner to take on President Trump since Sen. Bernie Sanders suspended his campaign in early April.

Updated 3 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.