🛒 Shopping Malls Are Evolving—Here’s Where CRE Investors Fit In 🔁

🚀 Forever 21’s Exit Sparks a New Era for Retail Real Estate 🔑

Bill Rapp, Commercial Mortgage Broker
March 27, 2025•2 min read

🚀 Forever 21’s Exit Sparks a New Era for Retail Real Estate 🔑

🛒 Shopping Malls Are Evolving—Here’s Where CRE Investors Fit In 🔁

The retail landscape is shifting rapidly, and shopping malls are at the heart of that transformation. Once the pinnacle of suburban consumerism, malls are now adapting to a world where e-commerce, changing consumer habits, and market forces are rewriting the rules. But don’t count them out yet—many mall owners are seeing new opportunities, especially in the wake of brands like Forever 21 announcing closures of all 360 of their U.S. stores.

Why Forever 21's Exit Might Be a Good Thing 🧾

While the closure of a major national retailer like Forever 21 might seem like bad news, mall owners aren’t panicking. In fact, many are viewing it as a fresh opportunity. These once-cheap leases are being replaced by more financially stable, experience-focused tenants that are willing—and able—to pay market rent.

Landlords are looking beyond fast fashion and welcoming in a new generation of tenants, such as:

  • Boutique fitness studios 🏋️

  • Local artisan markets 🎨

  • Food halls and chef-driven restaurants 🍽️

  • Medical and wellness centers 💉

These replacements not only generate higher rent but also drive consistent foot traffic and create a more dynamic tenant mix.

The Modern Mall: A Hub for Experience 🌆

Today’s malls aren’t just about shopping—they’re transforming into lifestyle centers. Think coworking spaces, apartments, entertainment venues, and immersive pop-up events. Developers are repurposing struggling retail centers into:

  • Mixed-use developments

  • Logistics hubs

  • Fulfillment centers

  • Community gathering spaces

This evolution is a response to how people live, work, and shop today. And it’s not just a trend—it’s the future of commercial real estate.

CRE Opportunity: The Silver Lining for Investors 💼

For commercial real estate investors, this retail evolution presents a big opportunity:

  • Reposition older malls into mixed-use destinations

  • Acquire undervalued retail assets in prime locations

  • Attract high-quality tenants through strategic renovations

As Forever 21 and other outdated tenants make their exit, savvy CRE investors and developers can step in and reshape the story.

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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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