Monday the Wall Street Journal blew the top off of the shopping mall story; department stores are yesterday's news. The Journal reported that in…
By
Anthony J. LoPinto |
anthonylopinto |
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Updated on July 13, 2016
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Monday the Wall Street Journal blew the top off of the shopping mall story; department stores are yesterday’s news. The Journal reported that in Orlando, Florida, a Nordstrom was torn down and replaced with a Dick’s Sporting Goods store and a crayon-based family attraction called the Crayola Experience, while a Saks Fifth Avenue was demolished, as well, to make way for a dining pavilion with 23 restaurants, and let’s not forget that a Lord & Taylor was carved into space for American Girl, H&M, Forever 21 and Zara.The dependence on anchor tenants such as Macy’s, Saks, or Nordstrom’s was the life-line of the Mall owner. This is no longer the case. Since 2011 General Growth has taken back real estate from 65 department stores, and the takebacks are accelerating.This is actually a good deal for the mall owners as anchor tenant rents, once priced at $2.00 a square foot, are replaced by $15 – $20 per square foot tenants such as Dick’s Sporting Goods, 24 Hour Fitness and other higher-margin tenants, and who thought Crayola’s would be in!
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