Maximizing the value of aging retail through mall repositioning

An article titled "A Little TLC" by Steve McLinden in the August 2010 edition of "Shopping Centers Today" pp 37 - 41 extols the value to equity holders in aging malls and other retail properties of repositioning to refresh the look of their properties.

Repositioning makes good sense. In today's economic climate, everyone wants to maximize return on their long-term investments while minimizing risk. Even municipalities are more willing to accommodate redevelopment plans because they realize the potential to increase tax revenue as a site is made more productive.

There are challenges, however. Cost containment remains a major issue. Plus some older centers with intermingled residential components can't simply be torn down and rebuilt. It takes significant creativity and expertise to make the redesign work.

Take the 109,000 square feet of mixed use retail and office known as Parktowne Village in Charlotte, N.C. for example. Built on the site of a performance challenged grocery store, Parktowne Village now enjoys vibrant activity, strong tenancy and traffic. The turnaround is the result of DMR Architecture's extraordinary ability to find creative solutions to site challenges.

The difficulties with the previous design were centered on a significant granite monolith next to the main traffic bearing street adjacent to the site. The old grocery store was located at the rear of the site and was not visible because of the granite along the street. DMR Architecture took a unique approach and incorporated the granite monolith as a component of the new design flipping the previous concept and allowing the development to occur directly along the main thoroughfare. Visibility was increased dramatically, driving higher lease rates, strong tenancy and an attractive environment.

Another example is Westfield Brandon Shopping Mall in Brandon, Florida. Located eight miles east of downtown Tampa in one of the fastest growing suburban communities on Florida’s Gulf Coast, DMR Architecture led the center’s transformation that would include 128,000 square feet of new leasable lifestyle, shopping, dining and gathering spaces. The center sits at the convergence of three major highways and is the leading retail destination for eastern Hillsborough County. With a discerning eye toward respecting the essence of the existing center and honoring the Westfield brand, DMR’s retail architecture professionals led the successful expansion and updating of Westfield Brandon.

At DMR Architecture, we feel that over the next few years, the focus will remain on repositioning existing properties to enhance productivity and breathe new life into aging properties.