But 21 chain stores remain on Park Avenue, their future undecided as corporations consolidate weak-sales locations and terminate others for economic reasons, area brokers and retail consultants tell GlobeSt.com.
Leaving Park Avenue are Banana Republic, Express and Victoria's Secret, after 15 years; Bath & Body Works, after seven years; and Illuminations, after three years. Express, Victoria's Secret and Bath & Body Works are owned by Limited Brands Inc., a publicly traded company based in Columbus, OH.
Area brokers and consultants polled by GlobeSt.com expect Park Avenue to survive and thrive even if the remaining 21 chains curtail operations in the near future. "Park Avenue has done well, compared to the overall market over the last 10 years," John M. Crossman, senior vice president, retail investment sales, Trammell Crow Co., tells GlobeSt.com. "Average occupancy rates have been over 95% and rental rates from $25 to $35 per sf."
The national average rent for enclosed malls is $20 to $70 per sf, according to industry sources. At the new 1.3-million-sf Mall at Millenia in south Orlando, some tenants are paying $80 per sf. In metro Orlando, retailers at open-air malls and strip centers pay an average base rent of $17 per sf.
Crossman concedes "the Avenue has had challenges" but "personally feel that it is the best retail experience in Central Florida and that the residential growth in the surrounding market will only make it stronger."
He says the departure of five of the chains is puzzling. "It does not make a lot of sense to me," the broker says. "I can't speak to the chains specifically (but) perhaps some have suffered from cannibalism and they are closing the most non-traditional locations."
Whatever their reasons for leaving, Crossman predicts "more chains will enter (Park Avenue) over the next 18 months than leave." He says the departures are "just a natural progression. The Avenue will recover."
Lisa M. DeVore, research direct at Advantis Real Estate Services Co./GVA, echoes Crossman's assessment on the exiting chains. "I don't think it's going to hurt Park Avenue over the long run" because "that area is so established and has so much character," DeVore tells GlobeSt.com.
As an example, she says, "You can buy bubble bath anywhere but you can't replace the overall experience that Park Avenue offers. It's evolved quite a bit over the last decade as well, and I think it will continue to (grow) until the tenant mix is just right."
DeVore adds, "Besides, when I think of Bath and Body Works, I think of the Florida Mall. When I think about fine dining, window shopping and ambiance, I think of Park Avenue. I think most people do.
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