As retailers close bricks-and-mortar stores at an accelerating pace, shopping center landlords are increasingly faced with the challenge of filling a lot of empty space.
The Wall Street Journal reports the solutions they’re coming up with are varied, but all have a common element: reducing, or even eliminating, retail from the equation.
Some landlords plug empty spaces with churches, for-profit schools and random enterprises while they figure out a long-term plan.
It’s a trend that can be seen locally at Cortana Mall, where anchor and other retail tenants have fled in recent years. When Sears announced plans to close its anchor location at the mall earlier this year, Cortana owner Moonbeam Capital Investments issued a statement saying it was “an opportunity to enhance Cortana Mall using its expertise in repurposing vacant tenant space and redeveloping mall properties nationwide.”
The mall is actively looking for “non-traditional” mall tenants, Moonbeam said the release, adding it will bring health care, education and office tenants to the mall. It’s also seeking restaurant, entertainment and more retail tenants.
The Wall Street Journal reports some shopping mall landlords see a future in mixed-use real estate, converting malls into streetscapes with restaurants, offices and housing. And some are razing properties altogether and turning them into entertainment or industrial parks.
The Wall Street Journal has the full story. (subscription may be required.)
