The Suburbs Will Lose the Most in an Era of Shrinking Retail

As brick and mortar retailers shed jobs and stores, suburbs will lose the most in terms of tax revenues and amenities.

1 minute read

April 20, 2017, 8:00 AM PDT

By Casey Brazeal @northandclark


South Mall Parking Lot

Scott Alderfer / Twitter

"It has been a decade since the media declared the death of the mall, in a year that would be the first in a half-century that no new malls were built in America," Henry Garbar writes for Slate. The closings have been widespread and deep. "The Limited, a women’s clothing store, shut down 250 stores and laid off 4,000 workers earlier this year. Sears Holdings will close 150 stores, including 108 Kmarts, and Macy’s will close another 100," Garbar reports.

This constriction of retail will affect suburbs more profoundly than it will affect cities, Garbar argues, and to understand why, you have to understand why malls moved to suburbs in the first place. Malls offered tax incentives and cheap land for large projects. This happened when retail was relatively robust. Now that there are fewer stores to go around, the competition will only become more fearsome."As shopping centers fold, developers of would-be projects will gain more power relative to suburban municipalities that already compete tooth-and-nail to steal each other’s business," Garbar writes. The result will be a race to the bottom and suburbs will be squeezed, whether or not they can accommodate these malls. To survive, Garbar opines, they'll have to look for new solutions.

Tuesday, April 18, 2017 in Slate

Sweeping view of Portland, Oregon with Mt. Hood in background against sunset sky.

Oregon Passes Exemption to Urban Growth Boundary

Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.

March 12, 2024 - Housing Wire

Aerial view of green roofs with plants in Sydney, Australia.

Where Urban Design Is Headed in 2024

A forecast of likely trends in urban design and architecture.

March 10, 2024 - Daily Journal of Commerce

Cobblestone street with streetcar line, row of vintage streetlights on left, and colorful restaurant and shop awnings on right on River Street in Savannah, Georgia.

Savannah: A City of Planning Contrasts

From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.

March 12, 2024 - Strong Towns

Aerial View of Chuckanut Drive and the Blanchard Bridge in the Skagit Valley.

Washington Tribes Receive Resilience Funding

The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.

7 hours ago - The Seattle Times

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18 - Beverly Press

View from above of swan-shaped paddleboats with lights on around artesian fountain in Echo Park Lake with downtown Los Angeles skylien in background at twilight.

LA's Top Parks, Ranked

TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.

March 18 - TimeOut

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.