It's hardly surprising that stocks of companies that own and develop shopping malls have trailed the market this year. And the Internet isn't the only problem mall stocks are facing.
Many investors expect consumer spending to slow next year as economic growth inevitably wanes.
But mall stocks are not. Moreover, a backdrop of rising interest rates this year has hurt mall REITs, which have high debt expenses. Retailers are expanding into new cities, increasing demand for leased space. An emphasis on providing new kinds of entertainment to draw more shoppers to the mall could breathe new life into these stocks. Rather than being buried by the Internet, leading malls are finding ways to adapt to the wired world.