10A —February 2023 — Retail Development Reimagined — M id A tlantic Real Estate Journal
www.marej.com
R etail D evelopment R eimagined By Joe Coradino, PREIT Retail Revolution: The Changing Landscape of Retail Development in 2023
hile the traditional mall model contin- ues to evolve amidst years of uncertainty, develop- ers are seeking to differentiate their retail offerings to keep up with consumer demand and current trends. With re- tail occupancy exceeding pre- pandemic levels in many cases, it is evident that physical stores have gained relevance. However, locations are now being chosen with strategic considerations, ensuring more dynamic options for consumers than ever before. Malls and shopping centers are now hubs for entertainment, food and W
digitally native brands, will continue to headline retail addi- tions. Should retailers continue to expand, the best retail centers will continue to attract new-to- market tenants. Shoppers are increasingly committed to diverse experi- ences including dining, en- tertainment, off-price, fast fashion and health & wellness. Particularly, dining and enter- tainment has grown in popu- larity in recent years. Several malls in PREIT’s portfolio have recently welcomed new brands in new markets, allowing the company to present a compel- ling, diverse portfolio. As the
mall experience continues to transform, it is essential that owners and developers are ac- tive in diversifying the tenant mix at their properties - add- ing elements seen less often at malls, like grocery anchors and medical centers. Moorestown Mall in Moore- stown, New Jersey is a great example of reshaping tradi- tional mall assets that are in competitive retail environ- ments. The mall offers a true community hub complete with dining, entertainment, fitness offerings – Planet Fitness and Orangetheory, as well as a value retail collection includ- ing HomeSense, Sierra and Five Below. And now under construction are Cooper Uni- versity Healthcare and a 375- unit apartment complex. These tenants are replacing a vacant Sears and underutilized land expanding utility for the com- munity and driving traffic to the property. While the economic backdrop certainly provides some chal- lenges for consumers, it is well- proven that an evolved mall experience including transfor- mation into community hubs with partnership from local partners is a more sustainable business model. Real estate owners of all varieties should always consider the highest and best use of their land - in the case of malls, which are horizontally situated snapping up vast swaths of land, this means going vertical - add- ing apartments and hotels to these sites. “Do-everything” centers are the future, and we’ll continue to see new-to- market experiences added to tenant mixes in 2023. You can buy groceries, see your doctor, dine out, and enjoy family fun in addition to shopping and socializing with friends. Also important to highlight, en- hanced safety and convenience measures such as contactless payment options and strong security are necessary compo- nents of any successful retail development project in the coming years. In 2023, retail real estate will continue to undergo major transformation. Unbeatable shopping experiences tailored specifically for today’s consum - ers is how retailers are reimag- ining and transforming the operation of their stores - and there is more to come. Joe Coradino is CEO of PREIT. MAREJ
Moorestown Mall
beverage offerings, and outdoor recreation opportunities like parks and trails. Incorporating
local, small, and diverse busi- nesses in addition to experien- tial tenants, value retail, and
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