2022 October 20

1000 Friends of Florida Sprawl Repair Webinar

Online

As a part of the Dr. John M. DeGrove webinar series, Galina Tachieva joined 1000 Friends of Florida to discuss the repair of sprawling communities. The structure of the webinar allows for over an hour of densely packed lecture, instruction, and Q&A to properly dissect the prevalent issue of sprawl in modern suburban communities across the country and around the world.

In this presentation, Galina Tachieva discussed strategies to enhance suburban communities as they exist today. Utilizing knowledge and methods found in the Sprawl Repair Manual, she explored ways to introduce connectivity, sense of place, mixed uses, and better, more diverse housing opportunities for communities. The webinar began with an overview of new urban principles and recent development trends and goes on to cover the retrofitting of large areas (shopping centers, office parks, etc.) and bringing smaller-scale, incremental change to neighborhoods with lean sprawl repair tools.

You can view the recording here.

You can also view other webinars in 1000 Friends of Florida’s series here.

Can anything stop the retail apocalypse?

With restaurants and bars now occupying upwards of 25 percent of space, mall owners are struggling to identify new opportunities to stem their decline. There is growing recognition that to compete with vibrant downtowns and online shopping, malls will also need to add hotels, apartments, and entertainment to create attractive mixed-use neighborhoods.

Transformation of the mall from a retail-only destination into a vibrant, mixed-use, urban center – University Mall, Orem, Utah

2018 October 9

Repair and Prepare Our Suburbs for the 21st Century

Charlotte, North Carolina

Galina’s opening keynote presentation positioned Sprawl Repair as a comprehensive and practical method to transform auto-dependent, single-use places into more complete, economically viable communities. It demonstrated how design, regulatory and implementation techniques derived from the “trenches” at all development scales: regional, community, block, building.

Strategies were identified to create economic and social value out of stranded real-estate assets as the demise of the industry that produced sprawl continues:  Malls and office parks are dying; golf courses are closing; McMansions are losing their appeal to Millennials. The presentation not only highlighted why we should retrofit sprawl, but also showed a practical How, Who and When step-by-step path of action forward to a better burb.

Download Galina’s Presentation

Editors NotesRetrofit Magazine held its second-annual one-day conference in October 2018 in Charlotte north Carolina. The conference brought together focused on retrofitting commercial, industrial and institutional buildings.

Troubled Malls Finding New Owners And New Life

Independence Center in Independence, MO, is a classic 1970s-era property.

More developers are finding new opportunities in underutilized malls and empty storefronts with mall retrofits.

“Tearing down these properties often makes less sense than finding new uses appropriate for an era when consumers shop so much online.

“A lot of these projects are at Main and Main streets,” says Najla Kayyem of Pacific Retail Capital Partners, “and great locations don’t go out of style.” Pacific Retail Capital Partners recently decided to step in as the operator of Independence Center, an iconic lifestyle shopping center in Independence, MO, just outside of Kansas City.

“We want people in the area to be proud of their center,” Kayyem says. She echoes the thoughts of many people currently developing or renovating retail centers in that these spaces need to provide experiences “that really create a community environment.”

Sears had a miserable, miserable Christmas

Sears Reuters-Mike Blake

“CEO Eddie Lampert said that its lenders and vendors must have a better outlook about the company’s future… and that negative outlook is putting Sears at a competitive disadvantage.

Lampert again insisted that the company is on course to turn a profit in 2018. But he also ominously warned that the company’s board will “consider all other options to maximize the value of Sears Holdings’ assets” if the company can’t refinance its debt.

Sears (SHLD) closed hundreds of stores last year, leaving it with just over 1,100. Last week it announced plans to close another 103 Kmart and Sears stores by April.”

Consider retrofitting the stores and malls through Sprawl Repair to save jobs, create livable communities and boost the investment returns.

Jobs everywhere! Except at stores

The retail meltdown is having the worst impact on the young, elderly, women and minorities hardest. According to the December Jobs Report:

“General merchandise stores, the segment that includes department stores, were hit the hardest, losing 90,300 jobs.

These job losses tend to hit the young, elderly, women and minorities the hardest. About 60% of department store employees are female, compared to 47% of workers overall. Minorities, the elderly and teenagers are also far more likely to find jobs in department and discount stores than they are elsewhere. Teenagers hold 8% of department store jobs, compared to 3% of jobs overall.

In 2017, 7,000 store closings were announced, a record that was more than triple 2016’s number. And the trend will undoubtedly continue in 2018. Sears Holdings (SHLD), owner of both Sears and Kmart, said Thursday it plans to close more than 100 additional stores.”

It is more important than ever to diversify our economy and opportunities through sprawl retrofits and mall repair that supports all of our citizens.

Here’s what could happen to America’s hundreds of dead malls

A Sears store inside the Woodbridge Center Mall in Woodbridge, New Jersey. Business Insider/Sarah Jacobs

It appears that the mall as we know it may be dead. Long live the retrofitted mall! New uses, new infill, new life for the king of the American consumerism. Read more about retrofit options that can boost an entire community from Leanna Garfield of the Business insider:

“More than 6,400 store locations have announced closures this year. In a recent report, analysts from Credit Suisse predicted that 20% to 25% of malls — about 220 to 275 shopping centers — would shutter over the next five years, largely because of store closures.

Malls of the future have an opportunity to fulfill other community needs besides commerce, June Williamson, an architecture professor at the City College of New

“The development climate of malls were driven less by demand and more by opportunity,” Williamson said. “As new centers get built, anchor stores are lured away, and a cannibalization process begins. … Only so many consumers are going to malls, and they will flock to newer ones. If developers build a new mall, they are inevitably undercutting another property. So older properties have to get repositioned every decade, or they will die.”

Closed department stores will most likely become other businesses that could benefit from the large square footage, such as fitness centers, churches, offices, public libraries, and even medical clinics, Williamson says.

Since most food courts have a lot of natural light, they could be used as gathering spaces for community groups or daycare centers if they closed down, Williamson says. Some food courts, however, are redeveloping into clusters of higher-priced restaurants.

Mall atriums are wide open spaces that can allow for events like concerts or fashion shows, or serve as car showrooms — all of which generate revenue, Williamson says.

Many dead retail spaces, Williamson says, will most likely morph into businesses that have community functions, such as apartments, public libraries, indoor farms, and refrigerated spaces for processing food for local restaurants or grocery stores.

Malls may increasingly turn their surface parking lots into space that emphasizes walking rather than driving.

Williamson describes ethnic malls as shopping centers that target a specific ethnic demographic in a community. She says this type of customized mall can thrive more than a traditional mall because it better meets local shoppers’ needs.

To subsidize regular retail shops, destination malls, also called super regional malls or lifestyle centers, use experiential attractions like movie theaters, bars, casinos, restaurants, rock climbing walls, laser tag, and even roller coasters.”

Learn more about Mall Retrofits in the Sprawl Repair Manual.

The Great Retail Retrofit

The abandoned Randall Park Mall in North Randall, Ohio Joshua Gunter/AP

Richard Florida describes how the “retail apocalypse” presents an opportunity to re-think and re-energize our communities in the wake of ongoing bankruptcies of chain stores, high-end retailers, suburban malls and metropolitan flagships. With hundreds of thousands of jobs lost, and more to come, Sprawl Repair presents a series of strategies for retrofitting communities at any scale.

“WeWork’s takeover of Lord & Taylor could be a good portent for urban economies. Work, not shopping, is the key to urban productivity and growth. … higher urban rents… are a function of higher urban productivity.

As talented people and high-paying jobs move back to cities, there is demand for more office space. But smaller companies and gig-economy workers need flexible coworking spaces that companies such as WeWork provide, and they need affordable living spaces as well. Both of these can be built in the shell of former retail spaces.

Educational and healthcare facilities, two land use types that are growing as retail shrinks, are a logical fit for these large, boxy spaces.

Mall retrofits can also help with resilience and sustainability efforts. Dunham-Jones and Williamson estimate that 10 such projects have been transformed into green infrastructure or parks.

Some of the most ambitious mall redevelopments are becoming mixed-use neighborhoods.

The Villa Italia Mall in Lakewood, Colorado, outside Denver, was almost completely demolished to make way for a new street grid lined with offices, arts facilities, parks, and residences, as well as new stores. The project is already generating four times the tax revenues that the old mall did.

Dunham-Jones and Williamson estimate that there as many as 650 mall retrofits in some phase of development across the country. From megachurches to indoor paintball parks, former malls and retail spaces are being converted to all manner of uses that better reflect the way we live.”

Westfield: Lowy family sells shopping centre empire to French property giant for $32 billion

The giant retail mall operator, Westfield, is being purchased by French property giant Unibail-Rodamco, to remain resilient in the face of the changing retail market. High-end markets remain their target. Agility and diversity will be key for retailers and their employees who continue to bear the burden of the changing retail climate. Communities that promote mixed-use mall repairs may have a chance to combat the sliding economy.

“The acquisition of Westfield is a natural extension of Unibail-Rodamco’s strategy of concentration, differentiation and innovation. It adds a number of new attractive retail markets in London and the wealthiest catchment areas in the United States.”

The Lowy family will retain control of Westfield’s retail technology platform, OneMarket, which will be spun off into a new company on the ASX, with Steven Lowy remaining as chairman.

Westfield Corporation runs 45 shopping centres and airport retail precincts in the US, UK and Italy, including the retail space in the new World Trade Centre in New York.

Retailers across the United States are in what appears to be terminal decline as shoppers abandon traditional bricks and mortar while the digital revolution lays waste to traditional shopping.

That, in turn, has begun to harm shopping malls as retailers have struggled to pay rents with many closing down their outlets.

Thousands of mall-based stores have shut their doors across the US this year, including stalwarts such as JC Penney, Macy’s, Sears and K-Mart reducing their physical footprint.

That, in turn, has begun to affect employment. Until as recently as two years ago, shopping malls were providing America with 200,000 extra jobs a year, but that trend has now suddenly reversed.

According to the latest Bureau of Labour Statistics, the retail industry has lost an average of 9,000 jobs a month this year. This time last year, malls provided jobs growth of around 17,000 a month.

Longtime Retail Pariah Now A Mall-Industry Darling

For years, gym tenants were unwanted by mall landlords as they were believed to provide little value, attracting visitors who were unlikely to spend money at any of the shops in the vicinity.

As the Retail Meltdown continues to rage, mall operators are rethinking their tenant mix to capitalize on increasing trends toward fitness and gym memberships to bring foot traffic to languishing stores. Lara O’Keefe describes the new attraction:

“Now, gyms are a valued addition to the tenant mix. Americans’ focus on health and fitness has grown to such an extent that athletic apparel has become an acceptable form of attire, increasing people’s willingness to shop after working out, the Wall Street Journal reports.

While many retailers have shuttered their doors due to e-commerce competition and declining foot traffic, fitness centers are on the other end of the spectrum as gym memberships skyrocket across the country.

This dynamic has made gyms attractive to landlords, especially as they look to reinvent themselves as entertainment destinations that offer a variety of activities aimed to draw shoppers.”

The Triumph of the Latin American Mall

Suddenly it’s 1990: Oakland Mall in Guatemala City, where the mall culture is in full bloom. (Nolan Gray/CityLab)

As American malls are failing, Latin American malls seem to be thriving. Social and economic factors appear to be the key. The good news for American retailers is that those who retrofit based on the resurgent Main Street model will be best positioned to capitalize on changing trends.

“…fear of violent crime and a relative lack of high-quality urban environments are also factors in the Latin American mall boom … malls provide a safe place to shop, and mall managers invest heavily in security. Combine this with the lack of reliable mail and home delivery service that hampers the e-commerce sector and there isn’t much competition for Latin America’s rising middle-class shoppers.

In most U.S. cities, on the other hand, violent crime has fallen dramatically over the last 25 years, and walkable urban neighborhoods that boast restaurants, bars, salons, and “experiential retail” are thriving. In this sense, the decline of the North American mall reflects a positive trend: The Main Streets that malls once menaced are coming back. Such amenity-laden neighborhoods are also in a better position than suburban malls to fend off the threat of online shopping.

In the U.S. and Canada, malls are still overwhelmingly anchored by major retailers like Sears, JC Penney, and Macy’s. And as the fortunes of these department stores have declined, they’ve dragged the malls they’re attached to with them. In Latin America, on the other hand, a whole variety of businesses act as anchors. Grocery stores are common in Latin American malls and are often situated at the end of long corridors lined with smaller shops, creating a steady flow of foot traffic.

When we feel nostalgia for malls, maybe what we’re really feeling is nostalgia a time when incomes were rising and the quality of life of average people was improving.”

Why shopping is about to become all about the experience

Katie Beck writes about the increasing online competition for retailers in Europe and North America, and its effect on the bottom lines of brick-and-mortar shops. Mall repair and sprawl repair techniques can enrich the overall community experience, while creating jobs and housing, and boosting the bottom line.

“In years to come, the Black Friday spectacle of throngs of shoppers scrambling past each other to ransack shelves of flat screen TVs might look very different.

Shopping may be about to undergo a dramatic transformation. Within the next decade it could change into an activity driven entirely by experiences and interactive technology rather than the act of buying. Think pop-up shops on steroids; places where you try things on or test products in person but don’t actually make any purchases.

But this increasingly digital shopping experience means brands have fewer opportunities to meet their customers face-to-face and are getting desperate to connect. It is leading them to seek out new ways of reaching consumers.

Exactly what will fill these spaces remains to be seen, but with digital retail technology likely to continue disrupting the shopping experience, it is safe to assume that Black Friday could become more of an experience than a bargain hunt.”

How a mall-turned-public park saved downtown Columbus

Columbus Commons hosts more than 200 events a year, including a Harvest Fair on September 30, 2017. Marielle Segarra, Marketplace

When mall repair is not economically or structurally feasible, sometimes re-greening a dead mall site in the form of a park or urban agriculture is the best option. The City Center mall in Columbus, Ohio has been reincarnated as a downtown park called Columbus Commons, and it’s driving the resurgence of activity and property value.

“Capitol South, a nonprofit development corporation created by the city, took over the property and started looking at redevelopment plans. The group considered turning the mall into an office building or a medical-research center. “Each one of the plans that we looked at either financially didn’t pencil out, or from a constructability point of view, it simply couldn’t be done,” said Guy Worley, CEO of Capitol South.

Instead, Capitol South decided to knock down the mall and build a park. The group was inspired by similar projects, like Bryant Park in New York City.

A big lesson, said Worley, is that on its own, creating a green space isn’t enough. You needed to bring people there. So Columbus Commons has an outdoor stage and a café, and it hosts more than 200 events a year — many of them free — like yoga classes and concerts.

Developers are offering vacant malls to Amazon in HQ bidding war

Communities and owners of dying malls are teaming on the bid to attract Amazon’s new headquarters.  It’s a smart idea that would be even smarter if some housing was thrown into the mix to create a complete community in the process.

“As Amazon’s deadline for bids on where to build its second headquarters approaches, developers are offering up derelict malls as potential sites.

Pittsburgh’s Parkway Center Mall is exhibit A for the nationwide trend with the owner, Kossman Development, changing up their new plans to rebuild the former mall to suit the needs of Amazon.

The old mall’s 35-acre site would become a 5.4 million-square-foot office space surrounded by bike paths and green spaces with 680,000 square feet of retail spread throughout the would-be office campus. The developer’s president Curtis Kossman submitted the revised plans to the Pittsburgh committee handling the Amazon bid last week.”

Read the original story by The Chicago Tribune’s E.K. Hudson

Now that Amazon’s a thing, malls have to get creative to survive

A Gold’s gym at a mall in West Covina, California. Source: Mashable

The malls that will survive into the future will be the ones that offer more than just retail. It will be crucial for mall operators to provide a variety of experiences and places that foster socialization. These malls, or lifestyle centers, can be achieved by reintegrating living, working, learning, playing – not only within the mall structures – but also through activation of the underutilized parking. Patrick Kulp of Mashable writes:

“Desperate to plug empty retail holes, mall owners are turning to less traditional businesses like gyms, grocery stores, and high-end restaurants to keep foot traffic flowing.

Some have even transformed parts of the buildings into office parks, medical facilities, or homes.

The new trend raises the question: What even is a mall anymore?

According to CBL & Associates, modern malls need to be “vibrant town centers,” replete with lifestyle and entertainment options beyond simple retail. The property group announced a rebrand of its own 113 spaces to this effect on Thursday.

The idea is to preserve the function that malls once served as a suburban social institution for a generation that may not even know what a “mall rat” is.”

Read more about reenergizing malls through Sprawl Repair. 

When Lincoln Square was iconic

In 1964, when nine square blocks of historic homes and businesses were demolished for the construction of the shopping center and accompanying parking lot, Urbana was optimistic about the shopping center, hoping that it would revitalize its downtown area.

The Champaign-Urbana community is facing many challenges while seeking an elusive solution for the “dead” Lincoln Square Mall in Downtown Urbana. Designed in 1964 by Victor Gruen, and now designated historic and protected from demolition, few options are available. The solution lies in adaptive reuse that should aim for a variety of uses designed to spur innovation, excitement and foot traffic.

“In 2004, a plan to reintegrate Lincoln Square back into the downtown and redevelop the building with apartments, open space, and offices fell through. That same year it and the adjoining hotel were listed on the National Register of Historic Places, preventing its demolition and forcing Urbana to work around it when trying to revitalize its downtown. Thirteen years later, its future is still up in the air as Carle and Health Alliance recently announce that they are leaving the complex. Various plans to introduce apartments and modern retail space to the area have been proposed, but none have come close to fruition.”

Singapore needs to reinvent retail scene

The retail meltdown due to online competition and an overabundance of physical stores is now being experience world-wide. Retailers intent on survival will need to be lean, flexible and creative to stay competitive. But it will require more than just department store chains to participate in finding solutions for failing malls.

“STB assistant chief executive Lynette Pang once said: “In today’s fast-changing tourism and consumer landscape, we cannot stay still.” It is therefore crucial for landlords, retailers and relevant government agencies to think “out of the box” to allow new brands and exciting concepts to flourish and take shape.

Increasingly, the experiential factor is key in making a difference to Singapore’s retail scene. Shopping malls can reinvent themselves with unique experiential retail spaces that set them apart from the mainstream. For example, the opening of Jewel Changi Airport in early 2019 will distinguish itself as home to Singapore’s largest indoor garden and the world’s largest indoor waterfall, featuring a light and sound show every night to enable visitors to shop, dine and play in one place. The new Funan DigitaLife Mall, set to open by end-2019, will be the first commercial building in Singapore to allow cycling through the building, and have rooftop farms that offer visitors a rest from the urban crowd.

With such unique and activity-based retail zones, landlords are better able to make their retail spaces break out of the homogeneity among retail malls.

Nordstrom Tries On a New Look: Stores Without Merchandise

Retail of the future may be more about experience than consumption.  According to Suzanne Kapner of The Wall Street Journal, some stores will not even carry clothing:

Mall owners take a pay cut amid brick-and-mortar struggles

 discusses a Wall Street Journal article by Peter Grant on declining compensation for mall owners due to a correction to the over-built retail environment and a result of the shift to e-commerce.

The Great Recession helped accelerate a natural correction, experts say. Last year, retail analyst Jan Kniffen, CEO of J. Rogers Kniffen Worldwide Enterprises, said that while America at the time had about 1,100 enclosed malls, that number should be around 700 — meaning that roughly a third are destined to close.

Those remaining will likely be robust, according to Nick Egelanian, president of retail development consultants SiteWorks International. “In a strange twist, however, the smaller number of malls that remain operating when the dust settles will become virtually indestructible by offering only best-in-class higher end merchandise in exclusive collections.  We already know who the winners will be, and the vast majority are owned and operated by four REITs: Simon, Westfield, Macerich and GGP.”

Incremental mall retrofits and sprawl repair can be the key to which malls succed.

Grocery Stores Move In On Suburban Locations

The interior of Natick Mall, MA, the upcoming location of a new Wegmans store

Laura Hillen writes that grocery retailers are finding new homes as mall anchors in suburbia.

Due to declining foot traffic, many retailers are now preparing to close a large number of their stores. These closures are leaving empty mall spaces in their wake.

Food retail is one thing helping struggling malls survive,” June Williamson, an architecture professor at the City College of New York, and Co-Author of Retrofitting Suburbia.

Williamson also stated that losing an anchor store and its lease payment can make it difficult for a mall’s survival. However, malls are starting to focus on answering consumer needs apart from just clothing. As the consumer shopping experience continues to change, malls could prove a successful financial hub by offering food-related business.

Retrofits of existing malls can capitalize on proximity to infrastructure, housing, parking and public transportation. Grocers and other non-traditional mall uses, such as offices and health care, can benefit the entire region without the need to build from the ground up.

Why the Death of Malls Is About More Than Shopping

Josh Sanburn offers an historic perspective on American malls, and a glimpse into the future for malls and communities willing to invest in sprawl repair and place-making. Learn more about Sprawl Repair Manual by Galina Tachieva.

Local jobs are a major casualty of what analysts are calling, with only a hint of hyperbole, the retail apocalypse. By 2022, analysts estimate that 1 out of every 4 malls in the U.S. could be out of business, victims of changing tastes, a widening wealth gap and the embrace of online shopping for everything from socks to swing sets.

Local jobs are a major casualty of what analysts are calling, with only a hint of hyperbole, the retail apocalypse.

In the 61 years since the first enclosed one opened in suburban Minneapolis, the shopping mall has been where a huge swath of middle-class America went for far more than shopping. But for better or worse, the mall has been America’s public square for the last 60 years.

Some of the great mall die-off is what economists refer to as a market correction. “We are over-retailed,” says Ronald Friedman, a partner at Marcum LLP, which researches consumer trends. There is an estimated 26 sq. ft. of retail for every person in the U.S., compared with about 2.5 sq. ft. per capita in Europe. Roughly 60% of Macy’s stores slated to close are within 10 miles of another Macy’s.

Some ailing malls have already moved on to a second life. Austin Community College in Texas purchased Highland Mall in 2012 and converted part of it into a tech-driven learning lab and library. In Nashville, Vanderbilt University Medical Center moved into the second floor of the 100 Oaks Mall a few miles from downtown. The Southland Christian Church in Lexington, Ky., bought their nearby mall and transformed part of it into an auditorium.

It also turns out that not everyone wants to spend their leisure time inside. Many of the new, millennial-focused malls are indoor/outdoor complexes designed as one cog of a suburban town center that includes apartments and office space … a magnet for millennials who are leaving downtowns for the suburbs but still want to live in a dense, walkable community.

There are still about 1,100 malls in the U.S. today, but a quarter of them are at risk of closing over the next five years, according to estimates from Credit Suisse.

 

 

Sears to close 43 more stores to cut costs

A Sears department store is pictured in La Jolla, California, U.S., March 22, 2017.
REUTERS/MIKE BLAKE

“Sears Holdings Corp (SHLD.O) is closing eight of its namesake department stores and 35 Kmart locations to cut costs and square footage in an effort to return to profitability, Chief Executive Officer Eddie Lampert said on Friday. The store closings are in addition to 150 the company announced in January.

“This is part of a strategy both to address losses from unprofitable stores and to reduce the square footage of other stores because many of them are simply too big for our current needs.”

As anchor tenants like Sears retreat, smaller adjacent retailers will suffer from reduced foot traffic. Where possible, increasing density utilizing Sprawl Repair techniques can return jobs and tax revenue to communities.

What to do with dead malls?

Anson Burtch writes about the escalating “retail apocalypse”, and successful options for the failing model of enclosed retail space surrounded by acres of parking.

“From a land-use perspective, dead malls are full of possibility. They occupy large swaths of often valuable land at crossroads or central locations with access to public transit and highways. When they were originally built, the land was frequently at the growing edges of suburbia but has since grown considerably in value by virtue of surrounding development and transportation improvements. This makes even dead malls valuable “land banking” assets for their owners.  In addition, the considerable volume of unencumbered raw space that is found in a typical anchor store makes them quite flexible for adaptive reuse. The desire and attention to revitalizing these areas has become a top priority and focus for local governments.”

“Luckily there are many options for revitalizing these properties. Remodeling as mixed-use developments has proven successful in many instances, and even more so when tied into transit systems. Other times finding unique tenants such as local governments, hospital systems, or libraries makes profitable and efficient use of the space. With a little creativity and a lot of willpower, communities can turn a potential unproductive eyesore into opportunity.”

Find tools for mall retrofits and more, in the Sprawl Repair Manual.

Brick & mortar vs. Amazon: Mall stores getting Amazonned into deep doo-doo

Horton Plaza. Important retailers started deserting it not long after it opened. A huge part of it has been ripped down.

The need to retrofit failing malls is becoming ever more urgent:

“On May 31, the big bank Credit Suisse predicted that 25 percent of malls would be gone in the next five years. Earlier forecasts had also been dire, and results prove them to have been accurate. Malls used to be anchored by big department stores — Sears, JCPenney, Macy’s, and the like.

All are now in deep doo-doo and closing stores, upsetting the malls that relied upon them as consumer draws and sources of revenue. The smaller mall stores, which pay higher rent per square foot than the anchors, are having trouble, further biting into mall revenue and traffic.”

Commentary: The mall is dead — long live the mall

Jun 20, 2017:  Orlando Sentinel Editorial Board spoke to Joshua Harris, director of the Dr. P. Phillips Institute for Research and Education in Real Estate at the University of Central Florida, to ask about malls:

“Q: Did shopping malls ever serve a purpose in society, beyond retailing? What changed, if anything?

A: Shopping malls became the de facto “town square” during the suburban development boom of the ’70s and ’80s. They were the place to go, hang out and be seen. Thus, the urban resurgence that began in the late ’90s, and really intensified in the past 10 years, has taken the “town square” back to the more natural walkable, urban environment. Places like Winter Park, Winter Garden, Thornton Park and now even Baldwin Park (close to 95 percent leased after suffering massive problems during the recession) are all the “hot” places to go on a Friday or Saturday. In reality, history will show that the suburban mall was the aberration, driven by urban decay and rising crime. With urban renewal and major declines in crime, the mall does not fit as well as it did for those few decades. There will be life for existing malls, but likely after being repurposed and designed to feel more like town centers.”

 

Where logical transportation and community infrastructure already exists, sprawl repair techniques can be used to add residential, office, entertainment, and public open space to spur an entire region with new, walkable Town Centers.

 

The Mall of the Future Will Have No Stores

PHOTO: FORD LAND At Fairlane Town Center in Dearborn, Mich., Starwood Capital brought in Ford, which converted a former department store into a workspace for its engineering and purchasing staff.

Shopping-center landlords are rethinking the traditional mall model—and shops aren’t necessarily part of the equation.

As retailers close bricks-and-mortar stores at an accelerating pace, shopping-center landlords like Starwood Capital are facing a vexing question: What to do with all this empty space?

Some landlords plug empty spaces with churches, for-profit schools and random enterprises while they figure out a long-term plan. Others see a future in mixed-use real estate, converting malls into streetscapes with restaurants, offices and housing. And some are razing properties altogether and turning them into entertainment or industrial parks.

Many mall owners are trying to liven up the experience, bringing more dining and entertainment tenants and eschewing the traditional mix.

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.

Regency’s retrofit: A model for Chesterfield?

Regency Square Mall in Richmond, Virginia is undergoing what’s called a suburban retrofit, a term used for taking aging malls, office parks and other suburban properties and transforming them into more sustainable, urban and mixed-use developments.

Both Regency Square and Chesterfield Towne Center opened in 1975 (back then the latter was the Chesterfield Mall), and the rejuvenation of Regency Square may offer a blueprint for Chesterfield Towne Center in the years to come.

Robert Gibbs, president of Gibbs Planning Group and author of the book “Principles of Urban Retail Planning and Development,” says Regency Square’s strategy may prove successful.

“I have seen those kinds of conversions work,” Gibbs says. “It’s when they turn the mall inside out and put the internal stores on the street.”

As department stores like Macy’s and Sears continue to struggle, Gibbs says the future is grim for the majority of America’s suburban malls.

“There’s about 2,000 of them, and we estimate that about 1,500 of them will close in the next five years, and that’s because they’re depending on department stores to stay open,” Gibbs says. “Without the department stores, it’s really hard to get people to go inside the mall.”

That said, Gibbs says malls in good locations can “right-size,” reducing their retail square footage and bringing in housing, entertainment and office space to create a walkable development where people can live, work and enjoy themselves.

Regency’s retrofit: A model for Chesterfield?

Regency Square Mall, which opened in 1975 in Richmond, Virginia, is undergoing what’s called a suburban retrofit, a term used for taking aging malls, office parks and other suburban properties and transforming them into more sustainable, urban and mixed-use developments.

Robert Gibbs, president of Gibbs Planning Group and author of the book “Principles of Urban Retail Planning and Development,” says Regency Square’s strategy may prove successful.

“I have seen those kinds of conversions work,” Gibbs says. “It’s when they turn the mall inside out and put the internal stores on the street.”

As department stores like Macy’s and Sears continue to struggle, Gibbs says the future is grim for the majority of America’s suburban malls.

“There’s about 2,000 of them, and we estimate that about 1,500 of them will close in the next five years, and that’s because they’re depending on department stores to stay open,” Gibbs says. “Without the department stores, it’s really hard to get people to go inside the mall.”

That said, Gibbs says malls in good locations can “right-size,” reducing their retail square footage and bringing in housing, entertainment and office space to create a walkable development where people can live, work and enjoy themselves.