The evolution of the mall continues to be one of the most hotly debated topics in the industry. With the latest rash of store closures—especially in the department store category—many have opined on the fate of malls. Those thoughts are according to Greg Maloney, CEO of retail at JLL.
“I use the word 'evolution' quite intentionally, because I believe that is precisely what we are continuing to witness,” he tells GlobeSt.com. “Most malls don't look like what we built back in the 70s and 80s, nor will they look the same 10 years from now.”
Strong properties, regardless of format type, change over time to keep up with the latest consumer demands—and malls are no different, he continues. “Will every mall that was built remain standing, of course not. But the vast majority are strong properties with quality demographic bases that will continue to evolve and meet the demand of today's consumer.”
As a result, Maloney says that there is more demand from “dining, entertainment and development-based clients as reconfiguring these properties has been kicked into high gear.”
The firm's Naveen Jaggi, president of retail brokerage, tells GlobeSt.com that he has seen demand for brokerage services continue to climb as a greater emphasis has been placed on service oriented retail and F&B concepts.
And the firm's Matt Powers, EVP of retail and e-commerce distribution group, notes that ship from store fulfillment is not a new concept, but it's an evolving one that continues to gain traction with retailers.
“As e-commerce grows, retailers are looking for options that allow them to increase sales and inventory turnover, and ship from store is part of the solution,” Powers tells GlobeSt.com. “After all, it's advantageous to both retailers and consumers. Since stores are generally closer to consumers than distribution centers, not only can retailers cut down on transportation and shipping costs, but customers can receive their orders in a timely fashion.”
It's great to see the adoption of a trend with a widespread, positive effect for both sides in the transaction, he adds. “There's so much more than meets the eye with this trend, and it's interesting to see how retailers are considering their retail locations as multi-faceted real estate assets.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
