Jeff Yastine serves as an editor of Total Wealth Insider at Banyan Hills Publishing. Recently, he posted an article on Medium that revealed hidden opportunities in retail malls. In today’s business world, many have been predicting the ‘death of retail.’ Many believe that due to the high penetration of internet into the consumer and business world, it led to rise in online shopping, therefore, leading to collapse in retail.
Jeff jokes that with the overhyped idea of final days to retail, it will reach a time when the United States of America might be renamed ‘United States of Amazon.’ While this may sound funny and innocent statement, there is some truth behind it.
Many families have stopped going out for shopping. The streets leading to shopping malls are deserted and have been left out for freight vans making deliveries from Amazon.
Interestingly, recently there was an introduction of airborne deliveries, thanks to the invention of drones.
But something is happening that is in contrary. Serious investors are refuting the claims that retail sector is dying. And this is because they know what most people do not know. Shopping malls may have lost their vibrancy, but instead of seeing it regarding places for shopping, perhaps you should change that and perceive them as retail assets as well as real estate assets.
The moment you realize this, you will know that they possess high potential for revenue sources.
The serious investors we mentioned earlier own are best represented by Brookfield Property Partners LP. The company recently submitted a buyout to GGP Inc for about $23 per share which amounts to $14.8 billion. They do so because they know the hidden treasures in retail assets.
Other suitable examples include the Berkshire Hathaway owned by Warren Buffet who recently bought stakes in Seritage Growth Properties and STORE Capital. Miller Value Partners is another example; headed by mutual fund manager Bill Miller, recently bought stakes in Washington Prime Group and CBL Properties.
As mentioned earlier, Amazon is to blame for the current situations faced by shopping malls. But wise investors are waiting like hawks for the day when the prices will hit bottom rock.
About Jeff Yastine
Jeff Yastine popularly known as JL by his friends is the editor of Total Wealth Insider. Jeff joined Banyan Hill Publishing in 2015 as editorial director. He has over two decades of experience in stock market and finance. Jeff has gained much recognition for his role in journalism. He was among the team that the New York State Society of Certified Public Accountants’ Excellence in Financial Journalism Award. Also, Jeff was nominated for 2007 Business Emmy Award