Miami International Mall's Market Value Plummets: An Analysis of Declining Retail Centers
Miami International Mall's Value Decline
Miami International Mall, currently valued at $159 million, has suffered a 59% decline from its previous valuation of $391 million a decade ago. According to a recent report by Morningstar, this downturn is tied to Simon Property Group's one-year forbearance on a $157.4 million commercial mortgage-backed securities loan, which matured in February.
Mortgages and Forbearance Details
- The CMBS loan was transferred to a special servicer after its maturity on Feb. 6.
- Simon secured a forbearance from lenders until February next year.
Impacts on Occupancy Rates
As of March, the mall's occupancy rate stood at 78%, with a significant loss of tenants posing challenges along with similar trends affecting other retail centers in South Florida.
Broader Market Trends
- Many malls, including the ailing Mall at 163rd Street, have seen dramatic declines in occupancy.
- The Galleria Fort Lauderdale is now on the market with a reduced occupancy rate of 67%.
As Simon's influence extends across malls in the region, analysts are watching the situation closely, fearing for the future of indoor retail properties.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.