Quote:
Originally Posted by osmo
Yes the Xandu/ American Dream Mall is a colossal dud. Something like 2Billion had already been dumped into it and its still not done. Public money has to pumped in (again) to keep the white elephant going.
The Mall as you said, in the North American context is dead. They are relics. Highly sought after retailers see the value in opening up their own stand alone locations versus being tied down to the mercy of a mall and its board.
"Lifestyle" Centers and Highly visible retail are the future that most retail is going towards. Yes Suburban Big Box still has its place, but more and more from a urban context retailers are realizing that going back to the "Street" offers great potential for branding and reaching target markets.
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While it's true that almost no new malls have been built for the last 20 years, the mall is nowhere near dead in the North American context. On the contrary, almost every major mall in the country has undergone tens of millions of dollars in renovations over the past 5 to 7 years. Metrotown, Chinook, Polo Park, Eaton Centre, Yorkdale, Square One, etc, etc, etc. Tonnes of new renovation projects have been announced in the past 1 or 2 years as well. Almost every major retailer that comes into a new market (or into the Canadian market) does so in one of the premier malls in the region - only really in Toronto (and to a lesser extent, Montreal and Vancouver) do you regularly see retailers going directly to the street.
So no, we're not going to see many more enclosed malls being built in Canada. But we are going to see further improvements and investments to the the existing premier malls (which feature the premier retailers, and have the highest rents), and the death of the uncompetitive secondary malls (those ones with a Zellers and grocer as the anchors, a few small services and dollar stores, and 50% vacancy rates).