Strip Mall Apocalypse ?

[Ron Fletcher]

This is one of those posts just to get everyone talking. In my area like many, they keep building strip malls like there is no tomorrow. Does anyone but me see a future train wreck here? This is my Oversimplified thesis: I like many am buying many things online. I will give three examples of how my changing spending habits affects three strip mall companies. 1. GNC: it’s so easy to buy supplements online that I would never need to step in a brick and mortar store. 2. Bed bath and beyond: Many of the purchases my wife used to make there have also migrated online. 3. Men’s warehouse: I,m already buying my ties online. I didn’t pick those three to pick on them but just as examples that I think could be repeated with dozens of others. Now factor this in: Many of these stores operate on razor thin margins already. Even if they only lost a portion of their sales to online would they still have a workable business model with what remains. What are your thoughts for investors based on this? Do you see a potential strip mall vacancy apocalypse potential?