Are shopping malls going the way of Blockbuster Video and other retail dinosaurs?
About 15 percent of U.S. malls will fail or be converted into non-retail space within the next 10 years, according to Green Street Advisors, Business Insider reported. Retail consultant Howard Davidowitz expects as many as half of America’s shopping malls to fail within the next 15 to 20 years.
An article in Bloomberg Business Week’s recent 2015 outlook issue entitled “Stalled Malls” noted that large regional malls as a percentage of all U.S. shopping centers have fallen by 7 percent over the past five years, according to Nielson. While some of that is due to the explosion in online shopping, it’s also due to changing demographics and consumer habits.
“Malls used to be a great place to chill for teens,” the article says. “Now they’re hanging out online.”
Indeed, retailers that cater to teens and Millenials are closing their stores at an alarming rate. Mall fixtures like Aeropostale, American Eagle and Abercrombie & Fitch are planning to close more than 630 stores over the next several years, Bloomberg reports.
But while those mall staples are retreating, they’re being replaced by completely different properties.
“Health clubs are growing more popular as mall tenants,” Bloomberg reports, noting that “people with active memberships average more than 80 gym visits a year – a lot of potential shopping trips.” They also take up a lot more square footage than typical mall tenants – many come equipped with basketball courts and swimming pools to go with the aisles and aisles of weight machines, treadmills and Stairmasters.
Many malls are also adding new types of service providers, like teeth whitening emporiums, health clinics and eyebrow salons.
“The American mall, in fact, is not dead, but the face of it is transforming rapidly.”
The American mall, in fact, is not dead, but the face of it is transforming rapidly. That’s why it’s more important than ever for property managers to keep track of their shifting portfolios, and a software system can help you maintain control more efficiently.
SKYLINE Property Management, Accounting, Reporting and Facilities Management Solution for Retail Properties is used by thousands of retail property managers and owners to streamline their operations and reporting.
Starting with the SKYLINE Web-Based Management Reporting Dashboard, you can view, monitor and manage – in real time – property, financial and performance data via a single web screen, and then drill down into the data to the unit and occupant level. The fully integrated SKYLINE Stacking Plan Dashboard is a color-coded visual representation of properties, floors, units and tenants based on key indicators.
As tenants come and go at an ever-increasing pace, SKYLINE’s Critical Event Alerts System is a must-have. The system provides automated notification of events and time-sensitive dates critical to managing your properties, including lease expirations, lease renewal effective dates, and intended move-outs.
The Lease Management module provides detailed analysis and documentation of key clauses in leases, renewals and amendments, enabling you to manage multiple leases with complex breakpoint clauses. Important tenant and property documents are stored electronically for quick and easy retrieval.
It also helps you optimize and diversify your retail tenant mix, a bigger issue than ever as tenants come and go.
You can also stay on top of your retail tenants’ performance through the Financial and Operational Reporting module. Automatically track and calculate year-to-date sales per square foot monthly or annually; analyze performance by tenant, chain, space and region; even project annual sales and overage rent.
But SKYLINE for Retail Properties isn’t just for staying on top of all the changes at the mall. It also helps you run your day-to-day operations.
For example, the SKYLINE Facilities Maintenance and Work Order Processing module enables you to easily create detailed tenant work orders as well as schedule and track routine preventive maintenance. Tenants can also electronically submit work order requests via the SKYLINE Web-based Tenant Work Request Portal. Work orders are then distributed via email to multiple technicians and vendors.
As the American mall changes, property managers and owners need help if they want to increase bottom-line profits and shopping center value, the kind of help SKYLINE for Retail Properties provides.