In addition to DBT’s feature on the state of indoor malls, here are some talking points from Co-Star, McKinsey & Co. and JLL Retail:
• Malls got their start in the U.S., but the five largest malls in the world are now located in Asia.
• The world’s largest mall is the 9.6-million-square-foot New South China Mall in Dongguan, China, with space for 2,350 stores. It is dubbed “the ghost mall” because it struggles for tenants due to its site in a poor rural area. Although it features a replica of the Arc de Triomphe and an indoor-outdoor roller coaster, at one point it was 99 percent unoccupied.
• In China, malls allocate 30 percent to 40 percent of their floor area to food and beverages.
• More than 43 percent of American malls are buffing up their common areas, and many are switching out hard benches for comfy couches.
• Four out of 10 U.S. malls are upgrading their food and beverage options.
• Three in 10 are adding fitness centers to attract millennials to malls.
• One in five is rebranding itself. Many are dropping the M word from their names.
• Some malls are reinventing lease agreements. Two new possibilities: Footfall-based charges — tenants pay based on the traffic that’s coming into their stores or moving through their section of the mall. It allows mall operators to capture value from customers who come to the stores to feel products but buy online. Online revenue sharing — tenants actually pay a portion of their brand’s online sales that occur within the mall’s geography.
• More than 36 percent plan to upgrade their tenants too. Some of the most popular tenants are TJ Maxx, Marshall’s, Home Goods, ULTA, Ross, Costco, Shake Shack, Potbelly, Jamba Juice, Starbucks, Panera Bread and BJ’s Roadhouse.