Shifting consumer preferences have left mall owners with empty boxes that previously housed department stores. This presentation explores multiple potential avenues for mall repositioning from a design perspective including razing, renovating, or keeping these department store boxes. Mall property owners can maximize their existing real estate to respond to changes in the market, by adding new use types and attracting a different mixture of tenants. The goal of this presentation is to show how what was once a department store can become an apartment building, climbing gym, food hall, or other new destination.

1. THINKING OUTSIDE THE
(DEPARTMENT STORE) BOX

2. the rise of online commodity shopping,
a shift in customer preferences,
too much retail in the wrong places,
today’s turbulent retail environment
(especially for department stores).

3. 46% 27%
Gross leasable area in European
shopping centers dedicated to
department stores
There is an abundance of department stores in the U.S.
Source: JLL Retail Anchors Away Report http://link.jll.com/retail-anchors-away
Gross leasable area in US.
shopping centers dedicated to
department stores

4. Several big
names are
consolidating
real estate
portfolios and
announcing
closures across
the country.

5. Source: Coresight: https://coresight.com/research/weekly-store-openings-and-closures-tracker-2019-4-house-of-frasers-intu-stores-set-to-stay-open/
More than 1,674 major
retail stores will close in 2019

6. Source: Coresight: https://coresight.com/research/weekly-store-openings-and-closures-tracker-2019-4-house-of-frasers-intu-stores-set-to-stay-open/
While more than 1,380
retail stores will open in 2019

7. That’s a lot of empty boxes.

8. and a lot of opportunity.

9. And mall
owners are
asking for
creative
design
solutions.

10. Angelo Carusi, Principal at Cooper Carry, stated in a
recent article in the Wall Street Journal that
“The building shells are more
valuable in that they offer
opportunity, and are very
adaptable to a variety of uses.”
Source: WSJ, https://www.wsj.com/articles/landlords-relishor-fearj-c-penney-store-closings-11548770400

11. Owners have three options.

12. RenovateRaze Keep

13. Raze

14. Remove the box all together

15. Without the box, the possibilities are endless.

16. At the
Houston
Galleria,
an empty
department
store box was
broken up

17. and converted
into multiple
thriving food
and beverage
spaces.

18. At Ballston
Quarter in
Arlington,
Virginia, a
department
store has
come down...

19. ...and a vibrant
mix of uses
has gone up.

20. Recently
completed,
Ballston
Quarter creates
a welcoming
destination.

21. Mixing retail
with other
uses can
create thriving
community
centers.

22. Renovate

23. A box with no windows might not seem
ideal for offices or hotels...

24. A box with no windows might not seem
ideal for offices or hotels...
But as with many things in life,
doughnuts* are the solution.

25. *Not this kind of
doughnut.

26. A floor-plan
doughnut.

27. CORRIDOR
CORRIDOR
CORRIDOR
Punching a hole
in the middle
of the big box
can allow for
double-loaded
corridors, which
are ideal for...

28. Offices

29. & Hotels

30. At Mazza
Gallerie in
Washington,
D.C., a Neiman
Marcus was
given new
life...

31. ...by adding
windows and
opening them
to the street.

32. Keep

33. Keep the box
and fill it with
a new use

34. According to the National Restaurant
Association, roughly half of Americans’
food dollars go toward eating out.
Source: Modern Restaurant Management
https://www.modernrestaurantmanagement.com/technology-and-experiences-will-shape-the-2019-restaurant-industry/

35. Many shopping
center and
mall owners
are expanding
their food
and beverage
offerings to meet
the demands of
consumers.

36. 20%
“In some regions of the U.K., Canada and
U.S., the amount of space in retail properties
dedicated to F&B is forecast to reach up to 20%
or more of total space by 2025.”
Source: International Council of Shopping Centers (ICSC) -
https://www.icsc.org/uploads/t07-subpage/Food-Beverage-Looms-Large.pdf

37. Food halls are
one popular
option as they
create a dining
out destination
for shoppers.

38. Owners can
also break up
the big box
into smaller
boxes.

39. This can allow
for smaller
footprints and
better-sourced
retail.

40. “Right-sizing”
retail square
footage can
allow for a more
diverse mix of
national and
local retailers.

41. Empty big boxes are also ideal for
competitive socializing and entertainment
tenants such as...

42. Music Venues

43. Bowling Alleys

44. Climbing Gyms

45. & Movie Theaters

46. More than 3 in 4
millennials (78%)
would choose
to spend money
on a desirable
experience or
event over buying
something
desirable.
Source: Eventbrite http://eventbrite-s3.s3.amazonaws.com/marketing/Millennials_
Research/Gen_PR_Final.pdf

47. Whatever the best use is for the department store shell, the
ultimate goal is for the space to spark foot traffic and interest,
answer market demand and ultimately drive success for the
mall.

48. “Closures of big-box department
stores are not a death sentence
for mall owners, but rather the
beginning of a new chapter.”
-David Kitchens, AIA
Principal, Cooper Carry

49. If you are evaluating options for a vacant department
store and/or looking for ways to re-energize a mall, call
the team at Cooper Carry to brainstorm ideas.
Angelo Carusi, AIA
404-240-9554
David Kitchens, AIA
703-462-6613
Gar Muse, AIA
404-240-9509

50. www.coopercarry.com
With a range of studios
including office,
residential, hospitality,
mixed-use, multifamily
and retail, Cooper Carry
is uniquely poised for
cross-collaboration, which
ultimately delivers a
seamless end product.