Malls typically lack quality local retailers. Local artists renting out a store front to sell their works, local gyms, martial arts studios, dance studios, that small store stuffed to the brim with cute little decor items, clothing stores for local fashion designers, and of course small restaurants.

Malls have none of those. Maybe a couple local jewelers, and everything else is large nation wide (or regional) chains.

Density of construction drives down rents. Large parking lots are huge lost opportunity costs. They don't give much tax revenue, and they don't contribute to the economy, there is nothing on them.

When I lived in an urban core, I was able to get everything I needed within a 5 minute walk. That included an outdoor mall, integrated into the walkable city, that was a mix of local stores and nationwide retailers. In contrast, the malls I drive to have none of that.