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Mall Owners Rush to Get Out of the Mall Business
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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"Mall landlords are increasingly walking away from struggling properties, leaving creditors in the lurch and posing a threat to the values of nearby real estate. As competition from online retailers batters store owners, some of the largest U.S. landlords are calculating it is more advantageous to hand over ownership to lenders than to attempt to restructure debts on properties with darkening outlooks. That, in turn, leaves lenders with little choice but to unload the distressed properties at fire-sale prices." Now, that is an article about what's happening in the states. I think it will happen here too. We have too many malls and some don't even make sense. When you go around, there are too many malls running empty,and why would you shop for a dress in a brick and mortar shop while you can get a huge variety online? When you look at the Karen area, there are 3 malls quite close to each other. Thika Rd/Kiambu, the same, Ngong Road (Prestige, Yaya, Green House, Ellys, The Junction...). Why are Kenyans still building malls at this day and age?
BBI will solve it :)
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Rank: Elder Joined: 7/10/2008 Posts: 9,131 Location: Kanjo
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2012 wrote:"Mall landlords are increasingly walking away from struggling properties, leaving creditors in the lurch and posing a threat to the values of nearby real estate.
As competition from online retailers batters store owners, some of the largest U.S. landlords are calculating it is more advantageous to hand over ownership to lenders than to attempt to restructure debts on properties with darkening outlooks.
That, in turn, leaves lenders with little choice but to unload the distressed properties at fire-sale prices."
Now, that is an article about what's happening in the states. I think it will happen here too. We have too many malls and some don't even make sense. When you go around, there are too many malls running empty,and why would you shop for a dress in a brick and mortar shop while you can get a huge variety online? When you look at the Karen area, there are 3 malls quite close to each other. Thika Rd/Kiambu, the same, Ngong Road (Prestige, Yaya, Green House, Ellys, The Junction...). Why are Kenyans still building malls at this day and age? adapt or die! Uber vs Taxis, airbnb vs hotels, digital vs analogue.... i.am.back!!!!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Kiash alituambia hii maneno kitambo 2015 "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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Hmmmm .....so, what is the outlook for Two Rivers 2 to 5 years down the line? Typically, they will charge tenants the price of a jet engine for rental space -and Kenyans will troop there by the thousands, in the beginning at least. The mall will choke Limuru Road and the Northern ByPass during the weekends, and then it will get old and Kenyans will lose interest.  Is Kirubi and Centum going to lose their shirt? Discuss. Informed opinion, conjecture and guesswork all welcome 
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Ridgeways mall charging for parking. Wonder why since there is nothing really to keep someone busy at Ridgeways to the extent of paying for parking. Life is short. Live passionately.
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Rank: Elder Joined: 8/16/2011 Posts: 2,389
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2012 wrote:"Mall landlords are increasingly walking away from struggling properties, leaving creditors in the lurch and posing a threat to the values of nearby real estate.
As competition from online retailers batters store owners, some of the largest U.S. landlords are calculating it is more advantageous to hand over ownership to lenders than to attempt to restructure debts on properties with darkening outlooks.
That, in turn, leaves lenders with little choice but to unload the distressed properties at fire-sale prices."
Now, that is an article about what's happening in the states. I think it will happen here too. We have too many malls and some don't even make sense. When you go around, there are too many malls running empty,and why would you shop for a dress in a brick and mortar shop while you can get a huge variety online? When you look at the Karen area, there are 3 malls quite close to each other. Thika Rd/Kiambu, the same, Ngong Road (Prestige, Yaya, Green House, Ellys, The Junction...). Why are Kenyans still building malls at this day and age?  Malls are not for everyday shopping to buy a quarter Kg sugar, salt etc. Malls are for weekend and end Month shoppers where affluent go for a variety and not the normal wanjiku window shopping for majani chai. Malls are charging a fee for those without coupons to show for anything bought as Kenyans have the habit of parking there in the morning, buying a packet of cigarettes and dunking out to office leaving the car parked for 8-9 hours. Malls space is for customers who are inside shopping. Some parking can be rented on monthly fee on agreement someone need parking and is always reserved. The weekend/monthly shoppers buy into thousands in their carts. 
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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sparkly wrote:Ridgeways mall charging for parking. Wonder why since there is nothing really to keep someone busy at Ridgeways to the extent of paying for parking. Noted the same at Greenspan mall. Why pay for parking when the same services / goods are available at arms length at Shujaa Mall and K-Mall? Not to mention 2 nearby Naivas supermarkets Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Even Uchumi Jipange (the dying one at Roasters next to Mountain mall on Thika road) has installed the latest parking machines and is charging. Unbelievable.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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hardwood wrote:Even Uchumi Jipange (the dying one at Roasters next to Mountain mall on Thika road) has installed the latest parking machines and is charging. Unbelievable. That must be the landlord who has installed it unless they own the premises?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Pesa Nane wrote:sparkly wrote:Ridgeways mall charging for parking. Wonder why since there is nothing really to keep someone busy at Ridgeways to the extent of paying for parking. Noted the same at Greenspan mall. Why pay for parking when the same services / goods are available at arms length at Shujaa Mall and K-Mall? Not to mention 2 nearby Naivas supermarkets Kwani how long does shopping take, I understand parking for 0-20 minute is free, and 20 mins-2hrs is a mere 50 bob. So if you cannot afford the 50bob parking, you shouldn't be shopping there in the first instance. If Obiero did it, Who Am I?
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Mall Owners Rush to Get Out of the Mall Business
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