Key Takeaways
• Over 70 major U.S. retail chains filed bankruptcy in 2025.
• Record-high mall vacancies now offer prime spaces at lower rent.
• Small businesses have a chance to move into top spots.
• Revitalizing malls can restore them as community gathering places.
In 2025, dozens of big retailers like Forever 21 and Rite Aid went bankrupt. As a result, malls across America now have many empty stores. These mall vacancies have driven down rent prices. Consequently, small businesses can afford spots they once only dreamed about. Moreover, local shops moving in can help revive these malls as lively centers for the whole neighborhood.
How mall vacancies came to be
The pandemic changed how people shop. First, many shoppers moved online. They enjoyed fast shipping and big discounts. Then, high expenses forced chain stores to cut costs. Some could not stay open and chose bankruptcy. As a result, malls filled up with unleased shops. By mid-2025, the vacancy rate hit a record high. Landlords faced two choices: wait for big chains to return or find new renters.
Why small businesses benefit
Smaller brands often struggle to find good locations. High rent keeps them out of prime spots near main entrances or food courts. Now, mall vacancies make those spaces affordable. In addition, landlords are eager to fill empty shops. They often offer flexible lease deals and incentives. For example, some landlords cover initial fit-out costs or reduce rent for the first year. Therefore, independent cafes, art studios, and boutique shops can access prime areas for less money.
Moreover, small businesses bring fresh energy. They can host local events, pop-up markets, and workshops. These offerings create foot traffic and community buzz. As foot traffic grows, more visitors come to shop, dine, and socialize. Over time, this positive cycle can help the entire mall thrive once again.
Making the most of empty spaces
Small business owners should act soon. Here are four tips to secure a prime spot:
1. Research local malls.
Visit malls in your area. Note which ones have recent vacancies. Compare foot traffic and nearby attractions.
2. Talk to multiple landlords.
Don’t settle for the first deal. Ask about rent discounts, lease terms, and fit-out allowances. Negotiate incentives for longer leases.
3. Plan for a unique experience.
Think beyond standard retail. Offer workshops, tasting events, or local artist pop-ups. Unique experiences draw more visitors.
4. Work with mall marketing teams.
Collaborate on social media posts and mall events. Joint promotions help both the mall and your business gain visibility.
Reviving malls as community hubs
Empty stores do not have to stay vacant. In fact, community groups, local schools, and fitness instructors can fill space with classes, art shows, and brief retail showcases. These activities add variety and keep visitors coming back. As more local ventures move in, the mall becomes a lively spot for families, teens, and seniors.
In addition, mall vacancies can support nontraditional tenants. Imagine a small theater hosting local plays, a cooking school teaching regional dishes, or even a startup incubator offering co-working desks. Such tenants make malls more than just shopping centers. They turn them into places where people learn, meet, and explore new ideas.
Challenges and solutions
Despite the benefits, small businesses face challenges. Some malls still have high operating costs and strict rules. However, smart planning and clear communication can overcome these obstacles. Small owners should:
• Read lease agreements carefully to spot hidden fees.
• Build a strong business plan that shows how they will draw customers.
• Keep an eye on mall foot traffic and adapt marketing accordingly.
• Seek advice from local business associations or mentors.
With these steps, entrepreneurs can succeed even in large, traditional retail spaces.
Future outlook
Looking ahead, mall vacancies may spark a long-term shift in how these centers function. Instead of housing only big chains, malls could blend retail, dining, entertainment, and community services. This mix addresses modern consumers’ desire for experiences over just products.
Over time, successfully repurposed malls will draw new tenants and customers. Some property owners may even redesign spaces to include outdoor seating, green areas, or tech-enabled interactive zones. These changes will make malls more inviting places for everyone.
For small business owners, the current wave of mall vacancies represents a golden opportunity. Landing a spot in a well-known shopping center can boost brand recognition and sales. At the same time, their presence helps restore vitality to local communities.
Frequently Asked Questions
What caused the rise in mall vacancies?
A mix of pandemic-related slowdowns and booming online sales hurt many big chains. When more than 70 retailers filed bankruptcy in 2025, malls saw record vacancies.
How can small businesses find the best deals?
Start by touring local malls to spot empty stores. Then talk to several landlords to compare rent rates and incentives. A strong business plan helps in negotiations.
Will consumers return to malls?
Yes. As small businesses offer unique events and experiences, shoppers will come back for more than just products. Community-focused activities can drive repeat visits.
What types of tenants suit vacated mall spaces?
Beyond retail, consider art studios, pop-up markets, cooking schools, and community workshops. These options help transform malls into dynamic gathering spots.