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City may help fill mall's empty spaces
Mon, October 15, 2007
By NORMAN DE BONO, SUN MEDIA
London's Westmount Shopping Centre may partner with the city to offer recreational programs in its vacant space, free of charge to taxpayers.
In another sign the era of the grand old shopping mall is dwindling, bowing to the big-box "power centre," the city's community and protective services committee is expected tonight to approve a recommendation to turn sections of the mall into community use.
"There is a need in the southern area of the city for community space, but the cost of building is high," Coun. Joni Baechler said yesterday. "We need to use the space that is available. This is a great idea when we have space sitting empty."
The move may see programs offered in the city's Spectrum Guide find a home in Westmount's vacant space, including such things as seniors' painting courses or children's dance classes, she added.
Michael Pearce, retailing professor at the Richard Ivey School of Business at UWO, applauded the idea and believes it signals a trend of malls coming full circle.
When first envisioned, the mall was seen as a new kind of community centre, balancing retail and community activities. Now, malls are struggling with fewer shoppers and housing businesses, schools and community events as first intended.
"The idea of putting other services into mall space is a good one . . . ," said Pearce.
A mall needs more than just traffic -- it needs "traffic that buys," he added.
Cherryhill is an example of a centre that caters to its seniors by offering the right retail mix, since there's seniors housing nearby.
If Westmount is inundated with youths and families attending city programs, it will have to offer the right shops, he warned.
Retailers in the mall will simply settle for more traffic through the wide-open aisles, said Shannon McMahon, a receptionist at Sami and Naji, a hair salon in the mall.
"Some people don't know we have a store here," she said. "And if more come in, they may want to try us out. I think it's a good thing."
Real estate agent Glenda James, who has leased space for tenants in Westmount, says it needs the initiative, since the mall has been handcuffed by high leases and taxes by its owner, the Ontario Teachers' Pension Fund.
"The rates they need are prohibitive. It is very difficult to get a tenant to pay what they want," said James.
The mall's second floor leases for about $35 a square foot, $10 of which is rent and the rest common-area fees, taxes and utilities.
On the main floor, rents are even higher.
That's one reason why about 25 per cent of the mall's 562,000 square feet is vacant, mostly on the second floor, James added.
The second floor has added 60,000 square feet of office space and a tenant, Stacmarc Research, which signed a one-year deal this summer, she said.
"It will help the mall," she said of the partnership. "Any co-operation will help and it may grow from there. I think this is wonderful."
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