Many major retailers are going down the drain as of late. Many of them have gone bankrupt in the last few years.
One of the biggest consequences of these bankruptcies is the fact that the malls housing them are also failing. This may be due to the e-commerce industry, which is undoubtedly problematic for shopping malls.
With that in mind, we thought it prudent to advise landlords on how they can reposition a failing mall and still find success. Let’s take a look at what you can do.
Why Are Malls Failing?
The shopping mall rose to popularity in the 70s and 80s. Consequently, developers used this opportunity to build, and by 2016, the U.S. had 23.5 square feet of retail space per citizen. To understand how massive that is, Canada and Australia have 16.4 and 11.1 square feet, respectively. The two countries are right behind the U.S., which has the largest square feet of retail space per citizen on the planet.
So, in many ways, the malls ruined themselves with such massive expansion. In the world of today, there isn’t enough need for such an enormous number of retail spaces. The newer generations are less and less interested in shopping, and when they are, they prefer to shop online than to go to the mall. Essentially, there isn’t enough business for malls to stay open.
How Can You Find Success with a Failing Mall?
Even though the malls are failing, the buildings can still be used. They are massive investments that cannot be left to rot.
Landlords can reinvent the mall by adding something new to it, like chef-driven restaurants and movie theatres, for example. However, most of these improvements and changes are expensive, and there is still no guarantee that they will succeed.
If a mall is failing, there is no reason to keep it as a retail asset. Naturally, you can sell it if you manage to find a suitable buyer with a large enough offer. However, you can also try out some of the several available repositioning options.
How to Reposition a Mall
Shopping malls are large buildings, and one of the best ways to use them that’s not retail-oriented is to turn them into warehouse facilities. Instead of using the building for selling products, it can be used for product distribution, as their location is often useful for it.
Outside of that, a failing mall can be turned into a:
• Farmer’s market
• College campus
• Medical facility
• Residential property
Many options exist, but you still need to choose one that’s best for you. You also need to consider the location of the property, what commercial tenants are looking for in the area, and what the current macro trends are. A radical change in the use of the property demands for a careful and detailed analysis.
After taking everything into careful consideration, you can be confident that the decision you make will pay off in the end. For more information, you may reach us at firstname.lastname@example.org