business news in context, analysis with attitude

by Kevin Coupe

We report here a lot about the problematic mall business; numerous malls and shopping centers around the country are in trouble because of the impact of e-commerce, shifting consumer shopping patterns, and the decline of many retailers that formerly would have served as anchor tenants.

But now, Trucking Info has a story about how the Delta Square Shopping Center in Memphis, Tennessee, has found new life - as the headquarters for JNJ Express, a trucking company.

It cost about $84 million to turn the mall into a logistics center, the story says.

According to the story, JNJ “operates more than 450 trucks, and its customers include major players in the new e-commerce economy, including Amazon, Walmart, FedEx, and UPS.” The company “received a 15-year payment-in-lieu-of-taxes incentive worth $5.8 million to build the $20.5 million headquarters and bring new life to the ‘severely distressed’ shopping center.” JNJ also reportedly plans to spend another $63 million on new trucks.

Just another Eye-Opening illustration, I think, of how the public and private sectors have to think differently about the use of assets and the importance of joint investments that will turn situations in distress into situations that can thrive.
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