Monday, February 26, 2018

Turning malls into mixed-use centers requires a new value calculation

Chain Store Age

We have all read the articles and seen the headlines: Malls Are Dying, Mall-pocalypse and other similar coverage forecasting the looming extinction the American mall. While these dire predictions might veer a little too often into hyperbole, they do describe a very real phenomenon. Malls are struggling. Online retailers have been steadily nibbling away at brick-and-mortar market share, and large department store dinosaurs have struggled to adapt to an evolving consumer marketplace.

Some malls are failing. Many more are underperforming. But malls as a category are not dying–far from it. Category A malls will continue to flourish, and many/most B malls still have great real estate fundamentals going for them: they typically occupy valuable and desirable real estate, with coveted locations frequently positioned near major transportation hubs. There is a very real opportunity to turn around an underperforming mall by redeveloping it into a new mixed-use destination.. . . more