# The mall isn't dead. It's a Gen Z hangout now

> After 200 closures since 2008, surviving malls are thriving by becoming places to spend time, not just shop.
- Title: The mall isn't dead. It's a Gen Z hangout now · Fortune
- Summary: After 200 closures since 2008, surviving malls are thriving by becoming places to spend time, not just shop. The best malls stopped competing with online…
- Keywords: malls, gen z, retail, green street, placer.ai, paco underhill, e-commerce, department stores, third place, commercial real estate, unibail-rodamco-westfield, mall
- Source: Fortune — https://fortune.com/2026/09/16/america-lost-200-malls-since-2008-now-the-survivors-are-becoming-gen-z-hangouts
- Author: Tatiana Sataua
- Read time: 2 min
- Topics: malls, gen z, retail, green street, placer.ai, paco underhill, e-commerce, department stores, third place, commercial real estate, unibail-rodamco-westfield
## The couch was always the point
That furniture outside fitting rooms seemed useless. Retail expert Paco Underhill called it a parking lot for two-legged pets, but it kept shoppers in stores longer.

> Give that companion a couch, and the shopper they came with may stay longer.
## Survivors are suddenly thriving
About 200 malls closed since 2008, but the remaining ones saw property values jump 13% last year. That's the strongest gain of any major commercial real estate sector.
## Department stores killed the old mall
Traditional anchor tenants blocked drugstores, grocery stores, and hardware shops from moving in. That made malls dependent on occasional shopping trips instead of daily visits.

> They were very clear: I don't want drugstores. I don't want a hardware store. I don't want a grocery store.
## Gyms and doctors replace retail
Malls are filling empty space with daycare centers, medical offices, restaurants, beauty services, and entertainment venues. Former department stores are becoming apartments and hotels.
## The mall became a third place
In 2025, nearly 38% of indoor mall visits lasted over 75 minutes. Analysts say malls are becoming social destinations where people work, meet friends, and kill time.
## Gen Z women love the mall
A study found 73% of Gen Z women call the mall their top place to hang out with friends. Coffee turns into arcade trips, which stretch into dinner and unplanned shopping.
## Online brands are moving in
Digital-first retailers now see physical stores as marketing tools that boost nearby online sales. Many are signing five-year leases after testing malls with pop-ups.
## Only the rich malls are winning
Of roughly 900 malls nationwide, only about 250 are benefiting from the comeback. The best-performing properties serve affluent shoppers, while struggling malls get left behind.
## Space wins when people want it
The comeback isn't saving all malls, just sorting winners from losers. The survivors learned that physical space becomes valuable when people want to occupy it, shopping list or not.

> I need to see it, feel it, touch it, smell it, and that is often how I can buy it.
## Key takeaway

The best malls stopped competing with online shopping and started offering reasons to stay all day.