Is this just a New York thing or are all US cities like that?
Not on a comparable scale, and in targeted ways.
In my area malls are dying. We once had one or two large, thriving malls in each of the adjoining / nearby five cities. As consumer trends changed, wealth within areas shifted to different populations, and commercial real estate prices climbed, two (
EDIT: now that I think about it, actually three with a fourth on the way out) of the malls died - including the largest, newest, most metropolitan one. The others shrank. And along with them all of the surrounding businesses that relied upon the ingress and egress traffic to peel off customers.
A pleasant side effect was that many of the businesses that were once housed across all of the now dead malls came together (along with more companies) to form a large and thriving "Outlet" - complete with a theater and many restaurants. All outdoors, all very nice. So that one large outlet center essentially replaced three different malls in three different cities.
One of the old malls is now filled with offices and other non-retail businesses, so at least the real estate didn't go to waste.