Deep in the Malls of Texas, a Vision of Shopping’s Future

[M II A II R II K]

Deep in the Malls of Texas, a Vision of Shopping’s Future


JUNE 20, 2017

By DAVID MONTGOMERY

Read More: https://www.nytimes.com/2017/06/20/r...-shopping.html

Scott Beck, the chief executive of a local real estate company, remembers riding his bike as a child to Valley View Center, a shopping mall in North Dallas. Cars filled the vast parking lot and anchor stores like Bloomingdale’s, J. C. Penney and Sears teemed with customers. Now, the bustle of shoppers has been replaced by the din of construction — led by Mr. Beck, whose company is clearing the way for a new $3.5 billion development of restaurants, offices and housing.

- Many malls across America have hit tough times, squeezed by changing demographics and competition from e-commerce, discount stores and newer malls with more diverse offerings. Morningstar Credit Ratings recently called the changes in the industry a “seismic shift” and warned of more financial pain ahead. Hundreds of department stores, mall anchors for decades, are expected to shut their doors this year. Several shopping centers in Texas give a peek into how mall owners and developers are responding. In spots where the shopping activity has slowed, the response is clear: Move away from strictly shopping, and expand the mix to include more restaurants and entertainment, or health care and education. Or, in the case of Valley View Center, start over from scratch.

- At Grapevine Mills, a popular shopping destinations in North Texas, the “experiential” formula is a major part of the marketing strategy. Owned by Simon Property Group, one of the country’s biggest retail real estate owners, Grapevine Mills feels almost like an amusement park. In addition to more than 200 retail outlets and restaurants, it has a Sea Life aquarium, a Legoland and a Round One Bowling and Amusement, which includes 24 lanes of bowling, billiards, video games and a karaoke studio. What was once a J.C. Penney Store is now Fieldhouse USA, a 106,000-square-foot indoor sports complex with nine volleyball and nine basketball courts. The mall, about two miles from Dallas/Fort Worth International Airport, is one of 16 Mills-branded shopping centers nationwide.

- Gregg Goodman, president of the Mills division of Simon Property, said Grapevine Mills drew from a “very wide distance,” including surrounding states, with a strategy focusing heavily on families and intended to encourage repeat visits and longer stays in the mall. On a recent Friday morning, dozens of schoolchildren escorted by teachers and parents trooped through Entrance Five to visit the aquarium and Legoland. “You get the kids here, the parents here, everybody’s happy,” said Stephanie Zafiridis, a preschool teacher from nearby Flower Mound. --- About 200 miles to the south in Austin, Highland Mall is getting a different kind of makeover. It is being reincarnated as the 11th campus of Austin Community College, under a nearly $900 million public-private initiative that has stirred new life into the surrounding North Austin neighborhoods.

- The vision Mr. Beck had for Valley View Center in Dallas is even more ambitious. The project is called Dallas Midtown and is often described as a city within a city. Renderings show clusters of office and residential towers overlooking parks and other green space. It is expected eventually to include boutique shopping, high-end restaurants, two luxury hotels, a branded surgical center, a 10-screen movie theater, an athletic club and a 20-acre park that Mr. Beck described as “our version of Manhattan’s Central Park.” That is a far cry from the Valley View that opened in 1973, riding a wave of retail expansion and grabbing national attention when a shoe store at the mall offered a free eight-ounce steak with any purchase of $5 or more.

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The exterior of a Sears at Valley View Center in Dallas. It was the first and the last store at the mall, which is to be the site of a new $3.5 billion development. Credit Allison V. Smith for The New York Times







The Legoland Discovery Center in Grapevine Mills. ‘Dining and entertainment is the new anchor — not Sears, not Macy’s,’ one developer said.







Two sisters, Julie, 8, left, and Jessica Lacy, 9, explored Sea Life Aquarium at Grapevine Mills. Experiences are part of the marketing formula for the destination shopping center, which has more than 200 stores, a Legoland and a bowling alley. Credit Allison V. Smith for The New York Times

[jg6544]

I remember the dawn of the age of shopping malls in Texas. The early ones were small and consisted largely of smaller stores - e.g. Highland Park Village in Dallas. Neiman-Marcus opened a stand-alone store in north Dallas in the early 50s because they discovered their customers were living farther and farther away from downtown and were coming into the store sooner. The first big mall in Dallas, at least that I remember, opened in south Dallas. It was anchored by a major store along with many smaller stores. In the late '50s, developers figured out that the smart play was to enclose and air condition malls to make shopping in the summertime less like trekking across the great Namib desert. North Park Mall in San Antonio (still operating) was the first I remember. It was followed shortly by Wonderland Mall. By the late '60s, suburban, air-conditioned malls were really eating into the business of the downtown stores across the state. Eventually, the downtown stores all closed (the exception is the original Neiman-Marcus store in Dallas) although I don't think suburban malls were entirely to blame. Now, consolidation among the major stores and internet shopping seem to have brought the era of the malls to an end. I wonder how many will still be around in ten years.

[austlar1]

Re purposing suburban malls in economically robust parts Texas might be feasible, but less prosperous regions (including poorer communities in Texas) are likely to have to deal with abandoned shopping malls and consequent blight.

[mhays]

Many will compete to be entertainment wonderlands, but the demand for those will be limited too. Many malls will find it easier to switch to other uses entirely. In growing areas, total redevelopment will make sense in some cases.

Switching existing buildings to other uses can be challenging given the amount of revisions needed (depending) and the low rents some uses are accustomed to. In high-demand cities, this seems like a waste of space generally when the alternative can be real urbanity.

[M II A II R II K]

Perhaps parkland with tennis courts, playgrounds, and swimming pools could be an option as well.

[JManc]

Originally Posted by mhays

Many will compete to be entertainment wonderlands, but the demand for those will be limited too. Many malls will find it easier to switch to other uses entirely. In growing areas, total redevelopment will make sense in some cases.

Switching existing buildings to other uses can be challenging given the amount of revisions needed (depending) and the low rents some uses are accustomed to. In high-demand cities, this seems like a waste of space generally when the alternative can be real urbanity.

Here in Houston, dying malls aren't really replaced by anything urban; they're usually further out but if the area is prime, the mall is knocked down for a totally new development. Often still retail oriented. The ones in meh areas either wind up selling Halloween costumes once a year or turn into discount furniture stores, flea markets.

[dollaztx]

Originally Posted by mhays

Many will compete to be entertainment wonderlands, but the demand for those will be limited too. Many malls will find it easier to switch to other uses entirely. In growing areas, total redevelopment will make sense in some cases.

Switching existing buildings to other uses can be challenging given the amount of revisions needed (depending) and the low rents some uses are accustomed to. In high-demand cities, this seems like a waste of space generally when the alternative can be real urbanity.

I have to agree with you. Only a small percentage of malls will be able to take Grapevine's approach. Most of the struggling malls will probably need to be razed/redeveloped like Valley View Mall.

I rarely go to malls. When I do, I end up going to the closest one when I'm going on my own and need to get out quick. When I'm accompanied with my kids/wife however I always end up going to Grapevine Mill's even though it's a good distance away from where I live and I end up spending a good chunk of the day there. It's become a destination for a broader region due to the attractions and restaurants. I can envision another mall in DFW being able to do the same in another part of the metro. But yeah, smaller metro's or metro's not doing as good economically are going to be lucky if 1 of their malls succeeded reinventing itself into a "Grapevine".

[Pedestrian]

Originally Posted by mhays

Many will compete to be entertainment wonderlands, but the demand for those will be limited too. Many malls will find it easier to switch to other uses entirely.

Some Light Shopping With Your Drug Infusion?
By Esther Fung
June 18, 2017 8:00 a.m. ET

One surprising (mall conversion)? Large medical providers.

The former Atrium Mall in Chestnut Hill, Mass., has been repositioned as a wellness and medical facility that will include the Dana-Farber Cancer Institute as a tenant. The institute recently signed a 15-year lease for two floors of the 286,000-square-foot property, taking up 140,000 square feet of space . . . .

Other tenants in the former mall, now called Life Time Center, include Life Time Athletic, a gym and wellness center, and a clinic for reproductive medicine. The Dana-Farber signing brings the center to more than 95% leased . . . .

For medical tenants, malls offer some advantages. Cancer-treatment centers house large equipment that requires sturdy structural support, and the ground floor of a converted mall offers a larger footprint than is typically available in a traditional medical office building . . . .

What’s more, malls are typically located along major transportation arteries, catching the eye of hospital workers and large physician networks, among others . . . .

https://www.wsj.com/articles/some-li...ion-1497787203

[NorthernDancer]

Cineplex just opened a 40,000 square foot entertainment/restaurant complex in downtown Toronto in the site of a former furniture store. They have another one planned for the site of a former Target store in Mississauga. Dave and Busters recently opened a second Toronto-area location in the site of a former gym:

http://dailyhive.com/toronto/rec-roo...dhouse-toronto



Cineplex's massive new entertainment complex is now open in Toronto

A 40,000 square foot entertainment and eats complex opened its doors at Toronto’s Roundhouse on Tuesday.

The Rec Room is known to bring together live entertainment, gaming, and dining all under one roof. And now in the heart of the city, across from the CN Tower and Rogers Centre, The Rec Room may also be your new favourite patio. The huge outdoor space features the city’s skyline views, and will probably be a hot spot this summer.

[M II A II R II K]

If weed is legal I'm sure that'll fill up some space.

[drummer]

ACC Highland in Austin is another example of reusing old mall space. It's long-term plan is to be the flagship campus of a large community college network, surrounded by apartments, businesses, retail, etc. It's not perfect by any means, but it's a pretty good repurposing effort that should be fairly successful.

In my opinion, one of the reasons Grapevine Mills is so successful is the location (a massive crossroads in general and also right next to DFW airport). It's also in an area that - especially now - has a lot of business conventions and family activities for all ages. It's definitely the epitome of what this thought is all about - entertainment anchors surrounded by restaurants and retail.