Specifically, he points to the major mall REIT's like Simon and GGP have. These entities have sold or let go of their centers in mid-to-smaller markets, and are focusing on the centers in major metro areas, with very few exceptions.

“In that time, companies that specialize in C or lower-level assets with a focus on re-development have formed, including Rouse and Starwood,” Garzia says. “Malls are living, breathing things, and the challenges they are experiencing are not dis-similar to the challenges that smaller metro areas are experiencing.”

In Garzia's experience, it's much easier to take a $500 per foot mall to a $700 to $800 per foot mall than it is to transform a $200 a foot mall into a $400 a foot mall. Winning in retail real estate comes down to creative thinking, in many cases.

“Malls in C and lower categories are embracing nontraditional uses like medical offices and residential, or may even be totally re-purposed,” Garzia says. “The B-plus and better shopping centers are going to be around for a very long time.”

ATLANTA—Are indoor shopping malls becoming extinct? Or will we see a resurgence?

That depends, in part, on whom you ask. Many retail industry watchers are down on malls—and with good reason. Big bankruptcies are driving big vacancies. The flip side is, these big vacancies are driving strategic redevelopment opportunities that could revitalize models with an experiential retail twist.

GlobeSt.com caught up with Nick Garzia, director of leasing for Atlantic Station to get his take. Atlantic Station. In 2015, Hines acquired the 586,000-square-foot retail center that anchors the mixed-use development, which also includes three class A office towers, multifamily communities, a full-service hotel and freestanding Ikea, Target and Dillard's locations.

“I don't think malls are becoming extinct, but I do think they are changing,” Garzia tells GlobeSt.com. “A stratification of product type has been taking place over the past several years.”

Specifically, he points to the major mall REIT's like Simon and GGP have. These entities have sold or let go of their centers in mid-to-smaller markets, and are focusing on the centers in major metro areas, with very few exceptions.

“In that time, companies that specialize in C or lower-level assets with a focus on re-development have formed, including Rouse and Starwood,” Garzia says. “Malls are living, breathing things, and the challenges they are experiencing are not dis-similar to the challenges that smaller metro areas are experiencing.”

In Garzia's experience, it's much easier to take a $500 per foot mall to a $700 to $800 per foot mall than it is to transform a $200 a foot mall into a $400 a foot mall. Winning in retail real estate comes down to creative thinking, in many cases.

“Malls in C and lower categories are embracing nontraditional uses like medical offices and residential, or may even be totally re-purposed,” Garzia says. “The B-plus and better shopping centers are going to be around for a very long time.”