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Feature
More competition brings less hope for older, enclosed
by Rich Timlen
Once-thriving malls across the nation are
closing their doors, being demolished, or shutting down entire wings without any
concrete plans for redevelopment. These malls, now considered dinosaurs in the
retail industry, are battling for business against glitzier, more modern
shopping centers, big box retailers, redeveloped main street shopping districts,
discounters and entertainment centers. Traditional malls are undergoing changes
of use to storage, university classrooms and new forms of retail.
Recently, malls in Landover, MD, Ogden, UT, Muskegon, MI and Johnstown, PA have
closed, a mall in Durham, NC is losing its anchor store, while a pair of
regional malls in Toledo, OH and one in Oak Ridge, TN are treading water just to
stay afloat. A declining mall in Spotsylvania, VA is hoping that the addition of
a Costco will help revive the site.
The Landover Mall in Landover, MD, once one of the region’s first and largest
enclosed shopping malls, closed late May. The site’s owner, Lerner Corp., does
not plan to sell the mall, which sits on a land area of 85 acres. Sears, which
owns its property at the mall, will continue to operate as a stand-alone store.
The mall was built in 1972 and formerly was anchored by Hecht’s, Garfinkel’s and
Woodward & Lothrop. Since then, Garfinkel’s and Woodward & Lothrop filed for
bankruptcy and closed, while Hecht’s moved out and opened a new location at a
mall in Bowie, MD. There has yet to be redevelopment talks for the site, which
is located right off the Beltway.
The 800,000 sq.ft. Ogden City Mall in Ogden, UT is expected to be completely
demolished by December. The city, which began to tear down the mall on May 15,
hopes to build an open-air development resembling Ogden’s original downtown.
However, no firm plans have been set. The Ogden City Mall opened in 1980 and was
anchored by JCPenney, Nordstrom, Weinstock, Bon Marche and ZCMI. The mall’s
original owner, Ernie Hahn, lost control of the site to CIGNA, an insurance
company, in the mid-1990s. The mall featured covered parking and a bright, airy
interior. The city of Ogden is still deciding whether to demolish a skywalk that
connected stores.
Facing too much competition from The Lakes Mall located along U.S. 31 in
Fruitport Township, MI, The Muskegon Mall in Muskegon, MI closed its doors at
the end of 2001. The mall’s owner, Richard Perlman of Chicago, is in default of
a $10 million mortgage held by LaSalle Bank of Chicago and has not made a
mortgage payment since Sears moved to The Lakes Mall. Muskegon Mall opened in
1976. As of now, there are no definitive redevelopment plans for the mall.
The Richland Mall in Johnstown, PA will be torn down and replaced by a Wal*Mart
Supercenter, which is expected to anchor a 540,000 sq.ft. center that also
includes Kmart, Richland Mall Cinemas and Michaels Arts & Crafts. The center
will contain eight other shops and five outparcels. The mall, which operated for
24 years before closing in 1998, will become a parking lot. The Wal*Mart
Supercenter will be built on Theater Drive, while Richland Cinemas will move
into a nearby theater.
The South Square Mall in Durham, NC will be losing Dillard’s, its anchor store,
on Aug. 17. That most likely will spell the demise for the mall, which has been
losing its battle with the new Southpoint mall, anchored by Hudson Belk and
JCPenney. By August, South Square Mall will be tenanted only by Foot Locker,
Lady Foot Locker, Champs, Mr. Work, Orange Julius and Ichiban. The mall’s
developer is considering various renovation plans, including refurbishing the
existing mall or tearing it down and adding a big-box retailer.
The Oak Ridge Mall in Oak Ridge, TN is planning to close a wing anchored by
Proffitt’s Store for Men. The last remaining store in the 80,000 sq.ft. wing was
a Radio Shack that relocated last Fall to a nearby shopping center. The mall
currently is only 30% occupied. Plans are to redevelop the mall into a
village-style downtown, but that is awaiting the outcome of a citizens petition
drive. Anchors at the mall include Sears, Goody’s and JCPenney.
The fate of two Toledo, OH malls depends on the action of its owners. The
30-year-old, 950,000 sq.ft. Southwyck Shopping Center has a vacant anchor store,
two closed theaters and vacancies in 40 of its 103 small shops. However, Sears &
Roebuck is planning to locate at the former Montgomery Ward spot if it gets tax
and wage incentives from the city of Toledo, which in turn wants assurances the
mall will be redeveloped by owner Sherman Dreiseszun. Current anchors at
Southwyck include Dillard’s and Dillard’s for the Home. Cotenants include J.
Foster Jewelers and Sweet Elegance candy store. There isn’t as much hope for the
North Towne Square in Toledo. Once Elder-Beerman department store closed in
1999, the two remaining anchors, Dillard’s and Montgomery Wards left. Currently,
the 756,000 sq.ft. center has 21 tenants for its 90 store fronts. MC Sports is
considered the anchor of the center, which is cotenanted by Renl Novelty, a
sports-collectibles store. There are no redevelopment plans for the center,
which is located at the intersection of Alexis and Telegraph Roads. North Towne
Square is owned by Simon Properties, Inc. of Indianapolis, IN.
Spotsylvania Mall in Spotsylvania, VA has seen a ray of hope with a 147,400
sq.ft. Costco. The new anchor may rescue the mall from becoming a fatality. The
mall, which has been operating for 22 years, has been in decline since the
construction of the Central Park shopping center across State Route 3. Costco, a
wholesale store, is filling the space formerly occupied by anchor Montgomery
Ward. Dick’s Sporting Goods, which opens this fall at Spotsylvania Mall, will
fill the space of five vacant store fronts.
Many of these malls, which were constructed with narrow and deep spaces for
stores, also are having a difficult time accommodating retailers need for more
frontage. This trend leaves mall owners waiting for stores to move out so they
can combine spaces for potential tenants.
While many of these malls can still be saved from the wrecking ball, their
recent failures are just an example of the ever-changing retail climate. These
older, out-of-date behemoths are slowly being nudged out by power and strip
centers and more modern, open-air shopping venues. With the increasing options
for the consumer, these malls will either have to update and redesign or risk
becoming abandoned relics.
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