Quote:
Originally Posted by jollyburger
But this debate is on multiple different levels. Urban form, density, economics of condo/rental towers.. The City of Burnaby pushed their street network and Ivanhoe obviously did the math and want to build towers.
Everyone can debate the form of the development but I doubt even with their reconfigured retail that Metrotown will suddenly become #50 on the profitable mall list. If anything their per square foot sales might go up than down.
And all the people that don't like mall crowds, rain, car/truck vehicle interaction are all on shopping online. 
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This is actually an important point.
Their overall gross revenue generated might potentially go down if they end up losing some retail tenants - either through the loss of leasable tenant space to exterior streets, or just tenants leaving during construction and not coming back.
However, their revenue generated per square foot is likely to go up since their overall effective square footage will go down from the breakup of the mall.
With the break up leading to some of the current mall square footage getting converted to public streets, their overall square footage (along with the assessed value and concommitant property tax assessed) might go down.
(initially,.....for the taxes)
For the square footage that remains however, it won't just be retail revenue generating square footage left behind, since those parcels will now have residential (...and presumably some office) towers atop the retail space so the overall revenue generating capacity of each parcel or remaining square footage will go up many times over depending on how much residential space they sell or rent out and how much office space they lease out, assuming they max out or at least optmize their assessed FSR's.
There's is a sliver of a world in which they end up with much less square footage of mall area but which generates upwards of 5 times more revenue for them.
But man if not all things have to break exactly right for this scenario to work out (no real estate market crash any time in the near future, the retail spaces that remain continue to generate revenue at a very healthy if not robust pace, they end up with a high-spending clutch of residents in those towers that are happy to frequently spend in those retail spaces below....etc), which is likely why they've stretched it and phased it out as long as they have.
It gives them more flexibility to change things on the fly as conditions on the ground shift and change.