Focus ’s Post

Back in 2017 WSJ had a similar article titled ‘The Mall of the Future Will Have No Stores—Shopping-center landlords are rethinking the traditional mall model—and shops aren’t necessarily part of the equation’. I can certainly see older malls, too risky too be renovated, and lacking anchors, may be better suited for multipurpose centers offering places consumers could visit, work out of, live out of, a place of entertainment, and so much more. We have seen this to some degree with the re-imagining of trailer and RV parks, certainly not the parks of the 70s or 80s! #retail https://lnkd.in/gQ3mhx4n

We hear a lot about the death of malls. It is true that some malls are struggling, but that's not because consumers have given up on physical places and spaces. Indeed, the view that people don't like shopping in person is largely nonsense. Malls that struggle tend to be those that have simply not evolved with changing consumer tastes and needs. As they've become dated, shoppers have found other places to take their business. It's interesting to read about how Simon Property Group is trying to correct this at Southdale Center in suburban Minneapolis. It is investing $400 million to transform the center with pickleball, luxury apartments, a hotel, new stores, co-working spaces, and more. As The Wall Street Journal puts it: the Southdale overhaul reflects big shifts in how Americans are going to the mall. https://lnkd.in/ew3GmXZ8 #retail #retailnews #consumption #malls

https://lnkd.in/gVf2X2Eg Inclusive Place of Pickleball Sports & Entertainment Inc. America's oldest mall is getting a new look: pickleball, luxury apartments, a hotel, and more. Owner Simon Property Group is investing more than $400 million is being invested into suburban Minneanapolis' Southdate Center. America's best malls are having a bit of a moment right now, in large part because of the durability of luxury retailers in the e-commerce age. While consumers may be spending less time in malls than ever before, they're still buying designer items in person. While the renovation is still in progress and the long-term payoff of the bet is unclear, Southdale Center is showing promising early signs of success with a full apartment building and a hotel that commands more than $200 per night during its busy season.

Is the oldest mall becoming the newest? Southdale Mall in suburban Minneapolis is considered the oldest enclosed mall in the USA. With the addition of fitness, hotels, apartments, and luxury retail it is becoming a brand new mall. Check out this article from the Wall Street Journal to learn more about how Southdale Mall is transforming to meet the needs of modern consumers. #RetailTrends #CommercialRealEstate #ShoppingMalls

There is no shortage of excellent shopping and retail options across the North York/Scarborough area to indulge in.⁠ ⁠ Learn more about the range of malls and boutiques to enjoy when living at Lawrence Hill, by visiting the link in bio.⁠ ⁠ #ForTheLoveofLawrence #LawrenceHillUrbanTowns #KingdomDevelopment #LawrenceHill #LawrenceHillTowns #NorthYork #NorthYorkRealEstate #Parkwoods #VictoriaPark #VictoriaParkAvenue #DonValley #DonValleyParkway #DVP #NewHomes #NewTownhomes #LuxuryTownhomes #LuxuryTowns #LuxuryUrbanTowns #GTATownhomes #GTARealEstate #GTAHomes #TorontoTowns #TorontoRealEstate

As Kate King reported in The Wall Street Journal this week, top-tier shopping centers — like Macerich’s 43 top-quality properties across the country — reported record-high leasing volume last year. We believe that’s largely due to our strategy of listening to our customers and investing in what they want and need. At #Macerich, we know today’s shoppers want to touch, feel and see retail items before they buy. Just as important, our Regional Town Centers are properties with purpose: destinations where communities come together for entertainment, dining, fitness and fun.    We succeed by continually revitalizing our properties, viewing the changing retail landscape as an opportunity. For instance, the recently opened Scheels in a former big-box location at Chandler Fashion Center generates four times what the prior tenant did. Life Time Inc. is thriving at properties like Scottsdale Fashion Square (where membership sold out immediately) and Broadway Plaza. And with grocery, medical uses, coworking, hotels and residential uses, our properties are active from morning to night.    Floris van Dijkum, managing director, Compass Point Research & Trading, LLC, notes: “The good malls are thriving. If you have the capital to reinvest in your malls, that’s how you keep them vibrant and relevant.”    https://lnkd.in/dET2FhD8   #Macerich #WSJ #FutureofMalls #PropertiesWithPurpose #RetailRealEstate #ChandlerFashionCenter #ScottsdaleFashionSquare

Top-tier malls reported record-high leasing volume and strong rent growth last year. That helped make malls the best-performing sector among publicly traded real-estate investment trusts over the past three years. #retail #realestate #malls #shopping #luxurybrands #design #construction #experientialretail #hotels #dining #fitnesscenters #walkability

💼 Revitalizing Simon Property Group's Southdale Center: A $400 Million Transformation! 🏢 🚀 Simon Property Group is turning the iconic Southdale Center into a futuristic retail haven with a $400 million facelift according to a story published this weekend in The Wall Street Journal. 🏬 Mall Evolution Highlights: * Investment Blitz: Simon Property Group is investing $400 million to transform Southdale Center in suburban Minneapolis. * Beyond Shopping: Shifting from mere retail, Simon adds luxury apartments, an extended-stay hotel, Shake Shack, fitness center, co-working spaces, and upscale grocers. * Luxury in Progress: A cluster of luxury shops featuring Gucci, Burberry, and Moncler is under construction. 📈 Changing Mall Dynamics: * New Mall Norms: Malls are evolving – shoppers spend less time but make higher-value purchases. * Top-Tier Triumph: Despite foot traffic decline, top-tier malls surpass 2019 tenant-sales levels, driven by luxury retailers and innovative amenities. 🛠️ Southdale's Ongoing Facelift: * Construction Buzz: The mall is a work in progress, with construction ongoing for new attractions, luxury shops, and a fully leased luxury wing. * Luxury Retailers Inbound: Leases signed with Burberry, Gucci, Moncler, and others signal a high-end shopping experience. 🏙️ Southdale's Future Vision: * Live-Work-Play Concept: Simon aims to create a live-work-play community, connecting fitness centers, luxury apartments, and co-working spaces. * Luxury Fitness Hub: Life Time, an upscale fitness center, leads the way, ranking as the company's busiest location. 🚀 The Resilience of Malls: * Longevity of Malls: David Simon, CEO of Simon Property Group, believes well-located and maintained malls, even the oldest ones, remain resilient. * Investment Focus: Simon's $800 million investment plan focuses on enhancing its best properties, ensuring their vibrancy and relevance. https://lnkd.in/grtvbJ_5

Simon Property Group continues to demonstrate that there is value in well-located #retailrealestate. Maintaining a conservative #balancesheet gives one the #flexibility to adapt your property to match #marketdemand. David Simon, chief executive of Simon Property Group, said he believes there will always be a place for well-located and -maintained malls, even really old ones. “There’s very few products in real estate that have that kind of longevity and staying power,” he said. “Malls are resilient as hell.” The most successful malls today are easy for shoppers to get to and surrounded by relatively affluent neighborhoods, but not too close to competing retail. Developers have stopped building enclosed malls, meaning existing operators don’t have to worry about a competitor opening down the road. For mall owners who can afford it, department-store closures offer the opportunity to shed big, underperforming tenants and replace them with something more lucrative and compelling to customers. REIT Academy & The Executive REIT Masterclass David Auerbach Mary Jensen Jonathan Morris Alex Pettee, CFA Craig Smith, CFA, FRICS Reagan P. Jonathan Litt Eka Gigauri Juliana H. Tom Ward #retail #mixeduse #redevelopment #HallKnowsRE

EDINA, Minn.—Could America’s oldest mall become the mall of the future? To make that leap, mall giant Simon Property Group is spearheading a $400 million spending spree to make Southdale Center in suburban Minneapolis much more than just shopping. Over the past dozen years, Simon has built a growing list of amenities in remote corners of its parking lot: luxury apartments, an extended-stay hotel and a Shake Shack. It knocked down a JCPenney and replaced it with a high-end fitness center and co-working space. Another defunct department store made way for an upscale grocer and a high-tech minigolf operator. A cluster of luxury shops is under construction for retailers including Gucci, Burberry and Moncler. The Southdale overhaul reflects big shifts in how Americans are going to the mall—once an iconic place to hang out for hours and buy everything from soap to suits. Boosted by new amenities and strong performance by luxury retailers, top-tier malls have surpassed 2019 tenant-sales levels despite lagging foot traffic. Shoppers are spending less time in malls, but they’re more likely to pull out their credit cards for big-ticket items than they were in the past. The overhaul of the 1.1 million-square-foot Southdale Center is still a work in progress, with construction sounds reverberating throughout the mall and foot traffic generally slow, especially on weekdays. The parts of the mall that haven’t been upgraded retain a dated feeling. Simon said it plans to eventually put entertainment-focused tenants there. It is too soon to know for sure whether the makeover will pay off, but the incentives for trying are clear. Top-tier malls reported record-high leasing volume and strong rent growth last year. That helped make malls the best-performing sector among publicly traded real-estate investment trusts over the past three years, according to Floris van Dijkum, managing director at the investment firm Compass Point Research & Trading, which advises institutional clients on investing in malls. “The good malls are thriving,” van Dijkum said. “If you have the capital to reinvest in your malls, that’s how you keep them vibrant and relevant.” Many malls haven’t been able to keep up, losing tenants and customers, with the worst off sliding into default or disrepair. Mall fortunes have sharply diverged in recent years, with the top 25% of U.S. properties raking in sales of $750 to $1,200 a square foot, according to real-estate analytics firm Green Street, compared with an average of $150 to $475 at lower-quality malls. Simon believes America’s oldest mall can become one of those top properties again, and says the elements already in place are working. Its apartment building is full, and the hotel charges more than $200 a night during the peak summer season.