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A thread of some thoughts on the evolution of malls (1 / 7)
1. Department stores / apparel —> model began failing years ago...
#retail $SPG $MAC $TCO $WPG $PEI $CBL
1. Department stores / apparel —> model began failing years ago...
#retail $SPG $MAC $TCO $WPG $PEI $CBL
(2 / 7)
2. Entertainment / Experiential —> promising but very nuanced given rise in digital entertainment, seek for unique (rather than repeat) experiences, etc. (for example, movie theatre visits decreasing for yrs) - regardless, model isn’t working today w/ social distancing
2. Entertainment / Experiential —> promising but very nuanced given rise in digital entertainment, seek for unique (rather than repeat) experiences, etc. (for example, movie theatre visits decreasing for yrs) - regardless, model isn’t working today w/ social distancing
(3 / 7)
3. Alternative users also seen in recent years: churches, research firms, etc. —> not lucrative & often canary in the coal mine for a dying mall
3. Alternative users also seen in recent years: churches, research firms, etc. —> not lucrative & often canary in the coal mine for a dying mall
(4 / 7)
4. Industrial & distribution centers —> Obstacles include re-zoning from commercial to industrial (lower tax rate for municipalities), co-tenancy implications on mall occ/revenues, etc. (also not really driving traffic to malls making it a last resort for landlords?)
4. Industrial & distribution centers —> Obstacles include re-zoning from commercial to industrial (lower tax rate for municipalities), co-tenancy implications on mall occ/revenues, etc. (also not really driving traffic to malls making it a last resort for landlords?)
(5 / 7)
Other potential uses:
5. Office —> seems to be too much uncertainty around how covid will impact office (work from home, etc.) Development expected to decrease. Also who wants to work in an office space with few or no windows??
Other potential uses:
5. Office —> seems to be too much uncertainty around how covid will impact office (work from home, etc.) Development expected to decrease. Also who wants to work in an office space with few or no windows??
(6 / 7)
6. Multi-fam —> very market-specific (downtown, where shortage of housing exists- not sure about a low-density suburban market); I’ve seen this done successfully w/ high-end centers incorporating lifestyle aspects, green spaces, etc. Assume this is very expensive redev
6. Multi-fam —> very market-specific (downtown, where shortage of housing exists- not sure about a low-density suburban market); I’ve seen this done successfully w/ high-end centers incorporating lifestyle aspects, green spaces, etc. Assume this is very expensive redev
(7 / 7)
Grocery stores —> One of the more promising uses IMO (no re-zoning required, rise in pickup of online orders) I also like food halls given the value placed on food/beverage experiences today (but tough in today’s covid environment).
Thoughts/comments welcome.
Grocery stores —> One of the more promising uses IMO (no re-zoning required, rise in pickup of online orders) I also like food halls given the value placed on food/beverage experiences today (but tough in today’s covid environment).
Thoughts/comments welcome.
