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Major Shopping Centers Getting Redeveloped

Major Shopping Centers Getting Redeveloped – the Latest

The major shopping centers getting redeveloped is illustrating the concept of highest-and-best-use for retail properties everywhere.

 

Trends in product and consumer preferences that were already in progress have been propelled by the events of 2020.    Accordingly, these mall repurposing schemes are less about better opportunities for these properties and more about the impact of the Covid-19 shutdown, the resulting failures of anchor retailers, and the continuation of consumer preferences for online shopping, among other factors.   Such is the state of the retail industry these days.

 

 

There is some good news, in that many retail properties are well-located in their communities, and there are alternative anchors - even all-new uses.

 

 

What has emerged is an industry focused upon highest-and-best-use and simply “opportunistic use,” for many of these struggling malls.   The feasibility analysis for these potential alternate schemes involves several constituencies, each of which has objectives for these malls that may conflict:

 

  • The investors and lenders that have capital tied up in these retail properties have their investment interest and to some extent they are agnostic as to repurposing so long as their capital is well deployed.   But repurposing does require new capital!

 

  • The local municipalities and county (or state) agencies having jurisdiction also have their role, starting with property and sales taxes.

 

  • Then there are the consumers, many of whom have a stake in having a shopping center in their community, and may not take kindly to losing part or all of their local shopping center.

 

  • Oh, and then there the tenants themselves who not only chose their locations to based upon co-tenancy provisions and the overall critical mass of clustered tenants.

 

Clearly, a lot of parties with sometimes conflicting interests, all are involved in major shopping centers getting redeveloped.

 

 

The Good News – Good News and Sometimes Good Alternatives

 

There is some good news.  In general, many retail properties are well-located in their communities, along primary traffic corridors, quality ingress/egress, and visibility from approaches zones.   These site attributes that worked well for shopping centers, in many instances make for excellent locations for mixed-use repurposing – often at higher densities than prior retail use.   This higher density can allow for projects to carry affordable housing components, which is a dire need in most communities.

 

The other good news is that there are alternative anchors, and even all-new uses.   Active mixed-use anchors such as multi-family housing, senior housing and care facilities, sports and recreation venues, health care, local college and universities (and their satellites), and location-based entertainment, can be viable for specific locations.   And there are the additional possibilities although not with the same synergies, such as data centers, fulfillment and logistics warehouses, dark groceries, and the like.

 

Major Shopping Centers Getting Redeveloped and Repurposed

Malls that have obsolescent designs or less than optimal locations given their customer support, are in particular risk during this age of mall transformation.

 

For More Information

 

With regard to major shopping centers getting redeveloped – we are tracking announced mall repurposing efforts.   This list of such malls is growing each, and we can now refer to our mall redevelopment list, as the Top 100 Mall Redevelopment and Adaptive Re-Use Projects.

 

Our Top 100 Malls in Redevelopment list is available here:

 

> Shopping Mall Redevelopment and Re-Use

 

Arc’teryx's store has four "experiential huts"

Arc’teryx’s Store has four “Experiential Huts”

AEC’s Consumer Products Monitor

 

Arc’teryx’s store has four “experiential huts” throughout its two-level, 8,000 SF store space in Shanghai; the retailer’s 30th store in China.   The outdoor apparel and gear store is among more than 3,000 locations globally for the retailer.  Arc’teryx Equipment specializes in technical high-performance apparel, outerwear and equipment, based in North Vancouver, British Columbia.  Arc’teryx Equipment is in turn owned by Amer Sports Oyj, a PRC-owned Finnish sporting goods company.

 

The immersive approach to the store’s design is an example of the kind of experiential retail necessary to make the -in-store visit compelling.  The four different experiential huts include: the “Hardshell Hut” featuring LED screen views and sounds of the Canadian mountains; the “Gore-Tex Hut” rain room; the “Hardgoods Hut” with the brand’s hard goods and a climbing wall; and the “Brand Hut” featuring a seasonally-changing virtual reality module.

 

Retailers that deliver in-store experiences are also what’s needed for shopping centers and retail districts.   As online retail purchases continue to rise, the relevancy of mall retail is more akin to the enduring interest of consumers for location-based entertainmentArc’teryx’s store with four “experiential huts” is the kind of hybrid retail/LBE that will allow physical mall destinations to make sense.

 

An interesting description of the store is available on the SGB Media website, at: Arc’teryx Opens Global Flagship Store In Shanghai

Water City Niagara Falls, a Cocov Destinations Niagara property

The Artificial Ski and Snow Era Begins, as New Venues Open in the U.S.

Elsewhere in the world, the artificial ski and snow era began in the 1990's.

The artificial ski and snow era begins in the U.S., as man-made facilities begin to open.   These facilities featuring artificial snow and ice have become common throughout Europe, China, and other regions of the world.

 

The opening of Big Snow at American Dream Mall in East Rutherford (New Jersey) may be venue that marks the beginning of this new era in the U.S.   American Dream Mall is a development of Triple Five Worldwide, the developer of mega-malls such as West Edmonton and Mall of America.   Triple Five also has a next mega-mall in planning, the American Dream Mall in Miami, Florida.  Although such places as Liberty Mountain Snowflex Centre (opened 2009) at Liberty University, Pigeon Forge Snow (opened 2018), SnoBahn Colorado (2018), and Buck Hill in Burnsville, Minnesota (2016), each opened well before Big Snow, the U.S. retail and outdoor recreation industry may have needed to see Triple Five’s more large-scale examples in operation.

 

Outside the U.S., artificial ski and snow facilities are common throughout Europe, the UAE, Egypt, Turkey, Russia, India, Japan, and in particular, China.  Between 2010 and 2019, at least 42 of these man-made projects have been completed.   The European “artificial” era got its start in the 1990’s with such facilities as Vuokatti Ski Tunnel (Finland), Montana Snowcenter Westerhoven (The Netherlands), and Noeux Les Mines (Pas de Calais, France).

 

For real estate, retail mall, and municipalities, these artificial ski and snow venues can take many forms, and can act as an effective anchor “gathering place.”   Indoor and outdoor “all weather” operation are a possibility.   Recreation sports such as downhill and cross-country skiing are a popular format, but non-sport artificial environments can include all forms of immersive attractions and themed entertainment.

 

Outdoor recreation consultants and designers - The Artificial Ski and Snow Era Begins

Artificial snowtubing hill, conceptual design.

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