Simon Property Group Inc. SPGrecently announced the company’s substantial redevelopment program at five properties. This move will help the retail REIT transform the former Sears stores and draw more traffic to these malls to benefit the existing retailers.
The properties included in the refurbishment plan are Brea Mall (Brea, CA), Burlington Mall (Burlington, MA), Midland Park Mall (Midland, TX), Ocean County Mall (Toms River, NJ), and Ross Park Mall (Pittsburgh, PA).
Per the plan, Brea Mall will have additional mixed uses. This comprises a new three-story, 120,000-square-foot Life Time Athletic healthy living, healthy aging, healthy entertainment destination, residential, entertainment, restaurants and new retail brands. In the Burlington Mall, the spaces will be revamped into new shops and restaurants, while in Ross Park Mall, the refurbishment plan includes a new dining hall, new retailers, restaurants, entertainment on three levels.
Further, the Ocean County Mall plan comprises inclusion of new stores and transformation into dining and fitness spaces. At the Midland Park Mall, renovations include additions of two new restaurants and a new bigger Dillard's store, along with a new-to-the-market large format retailer, per the company’s press release.
Notably, for the past few years, mall traffic has been plagued with challenges thanks to the shift in shopping patterns, with e-retail taking precedence, keeping retail REITs on tenterhooks. This has shrunk demand for retail real estate space, as changing shopping patterns are compelling retailers to reconsider their footprint, and eventually opt for store closures or file bankruptcies.