SCRANTON, PA-Despite popular opinion that most retailers are looking to locate in the trophy super-regional malls, there’s still a lot of life let in smaller enclosed centers, says Jones Lang LaSalle, which recently was retained by Boscov’s as the leasing agent for Lebanon Valley Mall and The Mall at Steamtown in Lebanon and Scranton, PA, respectively.
Boscov’s will continue to manage and anchor the 402,400-square-foot Lebanon Valley Mall and 563,800-square-foot Mall at Steamtown. Smaller centers do have their attractions for retailers, says John Bemis, JLL’s executive vp and director of leasing. After all, not all shoppers live near massive super-regional projects.
“There is certainly still a place for them,” Bemis says. “All across the United States, there are [markets] that could not support a 1-million-squre-foot-plus shopping center. But the distance to travel to major cities isn’t practical on a day-to-day basis.”
Lebanon Valley is anchored by Boscov’s, Hobby Lobby, The Great Escape Theatres and offers a mix of national and locally-owned retail establishments. The Mall at Steamtown, Scranton’s only two-level, enclosed mall is anchored by Boscov’s, Boscov’s Furniture Outlet, and Bon Ton. Both centers have occupancy in the mid-70 percents, which JLL aims to increase to the 90s within 24 months.
“[Hiring JLL] is a clear indication that Boscov’s has a positive outlook on the shopping centers, that there’s definitely a future for them,” Bemis says. “The Boscov stores are excellent performers.”
JLL will use its relationships with tenants around the country to find the “bread-and-butter” tenants right for these centers, Bemis continues. With lower rents and charges, and a captive audience, smaller markets in fact, can be more profitable for national retailers than their superregional mall stores.
“Most national tenants have staked their claim in the major markets,” Bemis says. “Now they’re seeing that secondary markets can be profitable.”
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