
Office Space Requirements Tumble in April as Markets React to Tariff Uncertainty
Wednesday, June 18, 2025
Are malls cool again? |
Published Monday, June 9, 2025 11:00 am |
This is a summary
"Macy’s and JCPenney still play a key role in drawing customers to malls, but empty anchor implants like entertainment brands, fitness centers, and restaurants are increasingly building new traffic across longer ranges of hours, declares Placer.ai’s latest Mall Report.
One key participant in this trending phenomenon is a brand that most retail experts thought had run its course: Barnes & Noble. In recent years, the land’s leading bookseller has reinvented itself in smaller stores (15,000 sq. ft. versus 25,000 sq. ft.) redesigned to be “hangouts” for local customers with better lighting, more open layouts, and opportunities for social interaction."
Read the original on Chain Store Age
Are malls cool again? | Chain Store Age
Image credit to Viktor Bystrov on Unsplash
Tenant demand for office space took a sharp downturn in April 2025, echoing the steep declines seen during the 2023 banking crisis, according to VTS Data. Leasing activity dropped in 17 of 19 major markets, with a 23.2% fall in tenant inquiries and a 26.4% plunge in square footage — the steepest since 2021. Analysts link this slowdown to economic uncertainty following new U.S. tariff policies. While some markets like Austin and suburban Maryland showed resilience, others, including Boston and Silicon Valley, were hit hard. Despite the grim numbers, history offers hope: office demand rebounded quickly in 2023, suggesting a similar recovery could be on the horizon — if policy conditions stabilize.
Franchise Group has officially emerged from bankruptcy as a leaner, debt-restructured company focused solely on two core brands: Pet Supplies Plus and Buddy’s Home Furnishings. After selling The Vitamin Shoppe and shuttering American Freight, the company has rebranded under a new parent entity, Fusion Parent, with the same leadership team in place. This streamlined structure allows the company to refocus on growth, with over 200 new franchise agreements already signed. While the path forward looks more stable, experts note that both remaining banners must sharpen their competitive edge to thrive in a challenging economy.
Tariffs be damned — retail is moving full steam ahead. Despite all the buzz about tariffs at this year’s ICSC Las Vegas, developers and retailers are largely shrugging off the uncertainty. Industry leaders say retailers simply can’t afford to pause expansion, with store openings planned years in advance. The consensus? Tariffs are just another hurdle, not a deal-breaker. Strong sales, aging store fleets, and limited high-quality retail space are driving urgency. Retailers with diversified supply chains are best positioned to weather the storm, and investor appetite remains strong as lenders return to the sector. As one exec put it: “We need 50 new stores — let’s go.”