Quote:
Originally Posted by Rail Claimore
One of those two malls will be gone in a few years, and I'm betting it's not Parkway place.
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I don't think that Parkway Place is going out of business, but that doesn't mean that it will be the exclusive high end destination that it has been. Malls have to reinvent themselves (which is what CBL did when they tore down the old one story Parkway City Mall to build Parkway Place). What set Parkway Place apart was that it offered high end stores new to the area - Williams Sonoma, Brookstone and Pottery Barn in a luxury setting with marble floors. My questions is how well would it perform if it were to loose some of these stores and that edge.
The larger question is how much retail can a metro area of HSV's size (of about 350,000 people) support? Someone's mall is going to suffer. The complicating factor is that all of the anchor stores and the parking lots in front of them at Madison Square are owned by the respective department store. In today's retail and credit environment it is almost possible to see how Sears and JCPenney's especially could walk away from their buildings (which have got to be paid off by now since they were built in 1984) and then seek to finance new buildings. And then where would they locate? There's certainly not much room at either Bridge Street or Parkway Place.
It may be that in the future, CBL will attempt to gut the mall interior and make it outdoor and more of a mixed use development, perhaps with offices and housing. It seems like it will be extremely challenging to lease all of their store space when Bridge Street has plans for an additional 75,000 sq. ft. in addition to the department store. Also, even after 10 years, Parkway Place still has some space it has never leased as well as empty storefronts where retailers such as Banana Republic and soon to be Jos. A. Banks have left.