Report: US malls can’t rely on Apple and Tesla to increase foot traffic
9to5mac.com - Tue 16 Apr 01:40 GMT

New data out today about retail store closures in the US shows that “experiential” tenants like Apple and Tesla aren’t driving consumer traffic to malls like landlords expect.

Report: US malls can’t rely on Apple and Tesla to increase foot traffic

  New data out today about retail store closures in the US shows that “experiential” tenants like Apple and Tesla aren’t driving consumer traffic to malls like landlords expect.

  Notably, strong brands like Apple and Tesla are often believed by landlords to increase consumer traffic and are given better deals on leases.

  However, Thasos’ latest data shows that hasn’t been the case lately and that landlords are likely overpaying for brands like Apple and Tesla.

  His firm found malls with so-called experiential tenants that aren’t just focused on selling products, like Apple, Italian food hall Eataly and Tesla, haven’t been drawing in extra traffic.

  “This suggests [real estate investment trusts] are overpaying to bring in Tesla and Apple, and others, in order to drive foot traffic to the property,” Collins said.