10A — April 28 - May 11, 2017 — ICSC RECon Las Vegas — Shopping Centers — M id A tlantic
Real Estate Journal
www.marejournal.com
ICSC REC on L as V egas
By Brad Domenico, Progress Capital Advisors Three R’s of shopping malls – Redesign, Repurpose and Renew
M
alls have always held a special place in our hearts. It’s
below market value. Devel- opers are taking notice. The result is a variety of ingenious mixed-use projects. THE KUSHNER EFFECT Who better to convert the 1.5M S/F Monmouth Mall into something trendy? Kushner Companies plans to over- haul the mall that opened in 1960 into a 24/7 “live, work and entertainment” develop- ment which will include 700 residential units, retail and restaurant uses, biker and pe- destrian-friendly greenspaces and an outdoor plaza. Kushner cited the decline of the tradi- tional enclosed mall and con- sumer trends of the Millennial Generation as catalysts behind the redevelopment. LIVE AT THE MALL As the oldest indoor mall in America, the Arcade Mall in Rhode Island underwent mas- sive renovations in 2012. The existing three story structure
with a grand open central cor- ridor was redesigned, main- taining retail commercial space on its ground level and converting the top two floors to ‘Micro Lofts,’ ushering in a new type of mixed-use, afford- able urban living. GOOGLE IT! Finding the closed Mayfield Mall in California to be a per- fect location for their corpo- rate headquarters, Hewlett- Packard occupied the space for a decade until Google purchased it in 2013 to house its Google Glass offices. REDUCE, REUSE, RECYCLE…& EDUCATE! While not as exciting as mi- cro lofts and greenhouses, the mall in Illinois was converted into a high school whichmade a quick impact on the local economy, utilizing the space for a necessary expansion of the school system. In Tennes- see, the Hickory Hollow Mall
added a community center, a community college campus and an NHL practice rink. Today’s Malls incorporate modern features like art ex- hibits, interactive maps and digital tabletops in restau- rants. Many feature pop-up shops for food and seasonal/ local retailers, and some have even deconstructed food courts into higher-end restaurants with mid-market options. In some cases, empty spaces are used as warehouses for “click and collect” merchandise. Tomorrow’s Malls will include progressive elements like heated parking and side- walks, smart parking garages, and solar panels with other green elements. They will incorporate nanotechnology into exterior finishes, have in- creased walkability via transit hubs, and have “downtown” experiences incorporated. Many will feature increases
in co-working, living, and civic spaces. Malls of the Future could offer shopping personalization via in-store digital profiles, interactive fitting suites, mo- bile app checkout, and drone package delivery for hands- free convenience. Rooftops will include dining, entertainment and garden spaces, and food courts will resemble street fes- tivals. Inside, common areas will double as event and edu- cational spaces, and facilities will feature experiences like cooking classes, pop-up shops, and specialty food stores. While shopping on-line may offer a level of convenience in an otherwise busy lifestyle, the mall of the future will be based around consumer expe- riences that go well beyond traditional shopping. Brad Domenico is Man- aging Director at Progress Capital Advisors. n
where you spend a day with family, where teens find their in- dependence, and where seniors en- joy strolling and social-
Brad Domenico
izing. Visitors may peruse a book, grab a coffee, try on clothes, check out new elec- tronics or see a movie. It is no secret that Amazon has disrupted the retail mar- ket. With 30 mega-shopping centers across the US cur- rently abandoned and an ad- ditional 30% forecast to have significant vacancy by 2022, creatively repurposing these structures could provide huge returns on investment consid- ering they are often sold well
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