Highlights. Projections indicate that up to 87% of large shopping malls may close over 10 years.
- The United States is home to an estimated 1,200 malls as of 2023.
- By 2028, there may be as few as 900 malls still in operation.
- In 1986, there were 25,000 malls, large and small, nationwide.
- A net 14,610 mall stores closed between 2016 and 2025.
- Malls had an 8.8% vacancy rate at the beginning of 2026.
Mall Closure Statistics
By some estimates, there were as few as 700 large shopping malls left in the U.S. in 2022.
- An average of 40 shopping malls closed every year between 2017 and 2022.
- The number of malls declined 3.08% per year from 2017 to 2022.
- From 1986 to 2017, shopping malls closed at a rate of 764 per year.
- The average vacant mall sells at 43% below its acquisition price.
- Shopping malls had a high-end average vacancy rate of 11.4% in 2021.
- No new indoor megamalls have been built in the U.S. since 2019.
- 2.6 million square feet of mall space was demolished in 2025.
Mall Vacancy Statistics
Shopping malls are twice as likely to be vacant as the average retail space.
- Closed malls are empty for an average of 3 years and 11 months.
- The nationwide mall vacancy rate is 100% higher than the overall average retail vacancy rate as of the first quarter (Q1) of 2026.
- In Q1 2026, there was a negative net retail mall absorption* of 1.2 million square feet.
- Class C malls with less than $300 in annual sales per square foot have a vacancy rate of 13.3%, 52.9% higher than the overall vacancy rate for shopping malls.
- Class B malls ($300 to $500 annual sales per sq ft) have a 9.0% vacancy rate; Class A malls ($500 or more in annual sales per sq ft) have a 5.6% vacancy rate.
- In 2025, 5,640 mall stores closed while 9,760 new stores opened for a net gain of 4,120 mall stores.
*Net absorption is the net utilized retail space versus unused space.
Mall Repurposing Statistics
Empty malls are often repurposed; such subsequent uses include sports centers, flex spaces, restaurants, and self-storage.
- Nearly half (46%) of mall redevelopments are mixed-use and feature some share of retail space.
- 31% of vacant malls subsequently acquired new tenants through pop-ups or new retail stores.
- 16% of empty malls reopened as mixed-use centers.
- 9% of vacant malls became warehouses, 7% became residential housing, 5% became delivery or distribution centers.
- 4% of vacant malls became community college or university spaces; a further 4% became health care, hospital, or medical facilities.
- 24% of vacant malls reopen for other purposes.
- 20% of vacant malls are rezoned.
- Banks finance 41% of repurposed malls.
- 18% of repurposed vacant malls are financed by retail real estate investment trusts.
- 17% of repurposed malls are financed by private investors.
- 5% of repurposed malls are funded by governments (local, state, or federal), 2% are financed by credit unions, and 15% have other sources of financing.
These data and insights were compiled by the Capital One Shopping team based on publicly available data.
Sources
- National Association of Realtors, Case Studies on Repurposing Vacant Retail Malls
- Jones Lang LaSalle IP, Inc., United States Retail Outlook
- Federal Reserve Bank of Richmond, Econ Focus: The Economic History of the Shopping Mall
- Business Insider
- The Motley Fool, What Is a Class A Mall?
- U.S. House of Representatives, The GREATER Revitalization of Shopping Centers Act of 2023
- International Council of Shopping Centers
- Statista, Commercial Real Estate