MACY’S LOOKING TO MONETIZE UNUSED PARKING LOTS

The 11.4 acre Macy’s-owned portion of Landmark Mall. Howard Hughes Corporation acquired the Macy’s parcel and has begun to transform the enclosed mall and the Macy’s parcel into a vibrant open-air, mixed-use community with retail, residential and entertainment components designed to create a dynamic urban village. Image: Howard Hughes Corp

“Struggling retailer sees opportunities to improve shopping experience by activating empty parking lots.

As the images of empty parking lots during Black Friday have demonstrated, commercial real estate professionals are slowly warming to the idea that we have far too much parking than is needed- diminishing municipal tax bases and taking away the ability to lease space within struggling shopping centers. Big box retailer Macy’s has announced their intention to create new revenue streams by reimagining acres of unused parking lots- a strategy used by tactical urbanists in places like Nashville, Indianapolis and Miami.”

Brick and Mortar Reborn – The Future of Retail in the Era of Urbanization

The trend toward urbanization is inspiring retailers to focus on the holistic customer
experience.

An August 2016 White Paper by Synchrony Financial in collaboration with Quartz creative services discusses Urbanization and the Consumer, as well as strategies for competing with growing E-commerce.

“EXPERIENCE-DRIVEN RETAIL: THE RISE OF FLAGSHIPS, CURATED SATELLITES, POP-UPS, AND CONCEPT SHOPS

Urban consumers strongly favor the in-store shopping experience—with an emphasis on the experience. Eighteen percent of urban millennials expect to shop more in stores in the coming year than they did the last. When they do, they expect more than just a transaction. They want a unique experience that differentiates their spending and are willing to pay, on average, 31.6% more for it.

From flagship stores to short-lived, curated experiences, the future of retail involves meeting shoppers on their own terms—in the physical spaces they prefer.

The spread of city culture and denser living means customers are willing to pay more for brands that sell experiences—that sell a lifestyle—as well as provide on-demand convenience.”

These same strategies can be aimed at all ages and populations, and should be applied to Mall Retrofits in suburban settings where the decline of aging malls continues to drive down surrounding property values.

Can Australia avoid the death of local malls?

Abandoned Malls by Seph Lawless-Source-Supplied

As Amazon nears offering service to Australia, Economist Jason Murphy hopes Australian malls can avoid the current American syndrome of dying malls. He offers the following suggestions that can also offer hope for our American malls through Sprawl Repair and Retrofit:

“Number one is probably to reduce their reliance on risky “anchor tenants”. Coles, Woolies, Target and Big W are shopping centre stalwarts, but none of them is certain to still be succeeding in a decade’s time. One or all of them could find the going a lot tougher in a world where Amazon is trying to win over our wallets.

The next big idea for shopping centres is to offer experiences not just goods. Amazon sells stuff you can get delivered to your door. But experiences — haircuts, manicures and massages; meals, coffees and movies — are still things people want to meet in person for.”

By increasing density and diversifying uses, dying malls can become innovative employment and social hubs that enrich the surrounding neighborhoods.

Time to think about taxes for the Bristol Mall

Bristol Mall Image by Zack Irby:BHC

The Editorial Staff of the Bristol Herald in Bristol, VA is seeking to raise public pressure on local officials to find a solution to the dying Bristol Mall in their midst:

“We’ve previously discussed ideas and the need for action for our “skeletal mall.”

“This might all imply prevention of the mall’s slow death is a civic issue, but it’s not. All of us citizens who share a hope to see the mall, built in 1976, thrive for another 40 years also have an applicable duty. We should collaboratively raise awareness and a sense of urgency to move on this.

Let’s try an experiment: Let’s all call and write the city’s leaders within the next two weeks, asking what’s being done to fill the mall and to explore these kinds of options.

If each reader makes the effort to simply ask questions, the strength-in-numbers concept would make the topic too relevant for our local government to ignore.”

Read more about their investigations into retrofitting their mall, and the success Sen. Tim Kaine, D-Va., experienced in Richmond during his time as mayor there.

Malls are doomed: 25% will be gone in 5 years

Single purpose mall surrounded by a sea of asphalt

Chris Isidore of CNN Money writes, “Store closings and even dead malls are nothing new, but things might be about to get a whole lot worse.

Between 20% and 25% of American malls will close within five years, according to a new report out this week from Credit Suisse. That kind of plunge would be unprecedented in the nation’s history.

In 1970 there were only 300 enclosed malls in the U.S., and now there are 1,211 of them. In fact, despite the recent turbulence in the retail industry, the number of malls open has actually edged

Repaired mall with vibrant 24/7 mixed-uses, increased density to support retail and entertainment, and beautiful, functional stormwater and local agricultural systems

higher every year.

If the analysts at Credit Suisse are right, that trend line about to turn — sharply — in the other direction.

According to Galina Tachieva, “Each store closing, and every mall mall that dies,  increases the urgency to return jobs and halt declining real estate values. Sprawl Repair through repurposing of dying malls offers a logical solution to create vibrant live-work communities where infrastructure is already in place.”

Learn more here:  http://www.dpz.com/Initiatives/SprawlRepair