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Malls and centers aren’t just for shoppers anymore as
brokers look
by Rich Timlen
One lone store has left the Lone Star state
looking for new concepts to fill numerous vacancies in centers throughout its
major cities, most notably the Dallas/Fort Worth area.
With the glut of spaces left by closing Kmart locations, brokers in Texas are
trying desperately to find retailers willing to lease the deserted spaces before
the retail market in the area takes too much of a downturn.
So far, several Kmart stores have closed in the area, leaving approximately 1.3
million sq.ft. of space available in the Dallas/Fort Worth, TX Metroplex. While
that only represents about two percent of the retail in the area, experts are
saying that some shopping centers may see a fallout when the anchor spaces
remain vacant or are tenanted by retailers that generate less traffic. Some of
the Kmart stores throughout the region could likely be converted into other
uses, such as churches, schools, libraries, city offices, recreation centers and
medical and fitness centers. Experts are saying the some of the Kmart stores
also could become ethnic shopping centers, most likely for the significant
Hispanic population and the increasing Asian presence. Just recently, an Asian
marketplace took over space formerly occupied by Home Depot and shopping center
at Pioneer Parkway and New York Avenue in east Arlington, TX. Also, a 100,000
sq.ft. Mercado Azteca, recently moved into a former Kmart at the intersection of
Interstate 30 and Buckner Boulevard in Dallas.
A major challenge facing brokers trying to lease these Kmart stores is that
there is a limited number of tenants that need 50,000 sq.ft. or more. Stores
like Wal*Mart, Target, Kohl’s, Home Depot, Lowe’s Home Improvement and
supermarkets tend to need specific requirements when they build their
facilities. However, many of these companies could end updemolishing the
existing structure and use the land to build new stores. So far, Kmart has
closed 53 stores throughout TX.
Also in Fort Worth, a 1,000,000 sq.ft. regional mall, which has been looking for
new tenants, is planning to open two entertainment venue focused on the Hispanic
community. The venues, which will occupy approximately 70,000 sq.ft. at the Fort
Worth Town Center, are expected to include an eight-screen Cinema Latino and a
35,000 sq.ft. OK Corral nightclub. As many as 40% of the tenants in the mall,
which is 70% leased, are retailers catering to a Hispanic clientele. Arcababa,
Inc. currently has three clubs in the Dallas, TX area named Far West, Liquid and
Bobalou; the Arcadia in North Fort Worth; an OK Corral in Houston and a Far West
in Oklahoma City, OK. Cinema Latino, which will show Mexican movies, is
occupying a space that was vacant for over a year. The revitalization came
within months of the mall, which is located at the intersection of Seminary Road
and Interstate 35 South, possibly losing its department store anchors.
But the problem of what to do with existing vacancies isn’t only in TX. With
increased competition from big box chains and other specialty stores, retailers
across the country are looking for fresh new concepts to stimulate sales at
older, regional malls and centers.
At the Edgewood Retail Center in Baltimore, MD, Morris Weinman Co. leased 50,000
sq.ft. of empty retail space for a flea market concept. The firm is utilizing
20,000 sq.ft. of the available space to stage the flea market and plans on
leasing the remaining 30,000 sq.ft. for traditional shops. The debut of the
market is set for mid-November.
Recently, in Glendale, AZ, the Simon Property Group opened a classroom in the
Metrocenter Mall, which allow students aged 17 to 21 to gain their high school
diplomas. The schools are called education resource centers and allow students
to work at their own pace in small classes. Some schools locate in strip
centers, but the Simon Youth Foundation is the only group that pairs schools in
malls with local districts. So, far these classrooms are located in 17 malls
across the country.
For more information regarding Kmart, contact Kmart Corp., 3100 West Big Beaver
Road, Troy, MI 48084; 248-463-1000, Fax 248-463-5636. For more information
regarding Fort Worth Town Center, contact Fort Worth Town Center, 4200 South
Freeway, Fort Worth, TX 76115; 817-922-8888. For more information regarding the
flea market concept at Edgewood Retail Center, contact Morris Weinman Co., PO
Box 5992, 106 Old Court Road, Baltimore, MD 21208; 410-653-1080. For more
information regarding the school at Metrocenter, contact Simon Property Group,
115 West Washington Street, Indianapolis, IN 46204; 317-636-1600. For more
information regarding the Echelon Mall, contact The Rouse Co., 10275 Little
Patuxent Parkway, Columbia, MD 21044; 410-992-6020, Fax 410-964-3487.
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