Overpricing shopping malls

The madness to build of the decades of 1980 and 90 left the country supersaturated of commercial centers. Growth in online sales and increasing demand for discounted goods are driving retailers to reduce their number of stores and divert resources to e-commerce platforms.NOW Commercial Shops for Sale in gulberg Lahore are available.

In all, these merchants have announced the closure of 2,880 stores from January to 6 April this year, more than double that of the same period last year, according to Credit Suisse. For the full year, the investment bank plans to close more than 8,600 stores. Analysts predict that around 400 of the nearly 1,100 malls in the US will close in the next few years.

Many owners of these centers are trying to bring the experience to life, bringing in more food and entertainment tenants, and avoiding the traditional mix of food courts, clothing stores and regular multi-stores.

One strategy is to transform the closed malls into open-air properties that the owners call "lifestyle centers," with departments, theaters, supermarkets, medical consultations, and other utilities; and much less retail.

In Arlingon, Virginia, owner Forest City Realty Trust is rebuilding the Ballston Common Mall, and in that effort knocked down the main entrance to create a plaza, removed two-thirds of the ceiling and installed more windows to create expansive views of open spaces. The Cleveland-based real estate investment company is also building 406 shopping center-linked departments.

"We're turning the mall in from the inside out," explained Will Voegele, vice president of the Forest City Realty Trust. "We do not want a building that turns its back on the street."

The firm is turning what was once Macy's furniture store into the third level of the mall into a meeting space for residents, which includes outdoor patios, seating and green areas. Your blend of tenants will offer more food choices and shops facing the street.

At Staten Island Mall in New York City, real estate investment and shopping center owner GGP Inc. is adding 21,832 m (+2) of space to an expansion that should be completed in the last quarter of this year year. Entertainment operators will occupy 54% of the space, while tenants in the food area like Shake Shack will account for 20%. Tenants in the clothing area such as Zara will make up only 17%.

The remaining space will be occupied by home furniture stores and personal care stores as well as other companies such as Apple Bank. The cheapest supermarket operator Lidl will open soon on the spot.

In the possession of GGP of more than 130 shopping centers, the clothing occupies half of the portfolio of gross leasable area. Food jumped 6% to 13% and is projected to rise to 20% by 2025, GGP chief executive Sandeep Mathrani said in a recent video conference on profit. The costumes will fall another 10% or so in the last quarter of this year, and will stabilize around 40%, he said.

From scratch

Sometimes the builders conclude that the only way to save an agonizing mall is by knocking it down and breaking it again.

The City Center mall in downtown Columbus, Ohio, was an important piece of the community where popular bands such as Hanson appeared in the 1990s.

However, the mall of 116,128.8 square meters began to deteriorate as competition from other shopping centers increased. The anchor multi-berths of the City Center, Lazarus, Kaufmann's and Jacobson's, closed in the 2000s, vacancy space rates rose to 75%.