Wednesday, March 14, 2007

Changing Malls

Across the country, many regional malls are languishing as shoppers are drawn by the gravitational force of super-regional mega-malls outfitted with restaurants, spas, movie theaters, gyms, supermarkets and, oh yes, stores. Or else they're ambling down the brick-lined streets of an outdoor "lifestyle center" that mimics the feel of a town square, with condominiums and office buildings nearby. The regional mall -- enclosed shopping centers between 400,000 to 800,000 square feet that proliferated through the 1970s and 1980s -- is becoming a relic of the past. Malls, which emerged in the 1950s with two stories of shopping anchored by department stores..

Most of the 20 shopping centers in the Washington D.C. area built in the 1970s and '80s with more than 400,000 square feet of leasable space were enclosed malls, including White Flint and Springfield Mall. Mazza Gallerie in the District was built in 1975 but is just under 300,000 square feet. Tysons Corner Center is the region's largest mall, with more than 2 million square feet, and was built in 1968.

But tastes changed. Enclosed malls gave way to open-air shopping centers that mix retailers, restaurants, residences and offices in one place. Only three shopping centers built in the Washington region since 1990 are enclosed.

Particularly vulnerable are regional malls, which generally have two or more anchors and draw shoppers from a radius of five to 15 miles. They have struggled with the popularity of new formats such as super-regional centers, with more than 800,000 square feet and at least three anchors; smaller, outdoor centers that include upscale national chains and restaurants; and power centers lined with big-box category killers such as Home Depot.. The problem of the regional mall has become so pervasive that it spawned a new buzzword, "de-malling."

The newest concept in "malls" is "mixed use", where the area is made-up of shopping, restaurants, parks and housing, ususally condos or town -houses. With walk-ways and open spaces the concept is to have "everything" the consumer needs or wants in one area.

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