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Supermalls reap profits

By Special to The Christian Science Monitor / February 9, 1984

San Francisco

Out of the many types of income-producing real estate, one of the current star performers has been the large regional shopping center. According to a survey by Kenneth Leventhal & Co., a California consulting-accounting firm, the supermalls have risen in value almost 8 percent (adjusted for inflation) a year since 1980. The fastest spurt has come among those with more than 750,000 square feet.

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Because these are attractive to the long-term investor, demand for rental space (at more favorable prices for investors) has been increasing. Smaller centers, the study found, will not do as well under projections and are estimated to increase in value only about 3.5 percent in 1983-84. This is largely due to the fall in prosperity of tenants in smaller centers during the recession.