Simon Property faces difficulties amid the coronavirus pandemic
Simon Property Group (SPG.N), the largest mall owner in the United States, stated on Monday that it was struggling from the surging coronavirus outbreak in big states including California, Texas, and Florida. The company said that people were scared to go to newly reopened malls which severely affected the retail industry and market sales.
Simon Property’s shares were down by 58% this year.
On Sunday, Simon Property Group and Amazon.com Inc. (AMZN.O) started talking about emptying store spaces formerly occupied by anchor tenants such as J.C. Penney Co. Inc. (JCPNQ) and Sears Holdings Corp. (SHLDQ) to turn it into Amazon fulfillment centers. The companies said that discussions started even before the coronavirus pandemic began.
“When you have to start buying your tenants, you’re in a big problem,” CenterSquare Investment Management’s Chief Investment Strategist Scott Crowe said.
“It’s the complete antithesis of being a landlord. The only reason one would buy a retailer is because it’s the least worst option, and they know they won’t be able to lease that space to anyone else,” he added.