Bringing in tourists just to see the airport

Airports are often considered gateways to other tourist activities. Yet, they can be tourist destinations in their own right:

Hughey’s at the vanguard of a new phenomenon: terminal tourism. Programs adopted or being considered by a number of airports allow people beyond security checkpoints so they can meet arriving relatives or just hang out. It’s a bit of a return to the days before the 9-11 terrorist attacks, when airport security was more relaxed and you didn’t need a ticket for a flight to get inside. The programs are taking root as airports expand options to fill passenger dwell time, as it’s called — those often mind-numbing hours between when people make it through security and when their flights take off. Now many airports feature live music and art exhibits. There are spas, microbreweries, playgrounds, gourmet restaurants and wine bars.

Pittsburgh was the first airport to open up to non-travelers, in 2017, and Tampa started doing so last month. Seattle-Tacoma is evaluating a pilot it tested earlier this year and Hartsfield-Jackson Atlanta International, the nation’s busiest, may seek approval for a trial run. The idea is under consideration in Detroit and Austin…

Some view it as a potential money-maker; officials with the facilities in Atlanta and Detroit figure they might see additional revenue from parking and concessions. A survey of visitors during Seattle-Tacoma’s trial showed people stayed an average 2.5 hours — though they spent only an average $10.29.

At Pittsburgh International, the impetus was popular demand, said Chief Executive Officer Christina Cassotis. She was peppered whenever she appeared at public forums. “In the top five questions was always, ‘Why can’t we go back to the airport and see what’s going on out there?”’

I know there are security concerns but I cannot believe it took this long to consider this potential revenue generator given the number of cities interested in tourism. If the buildings are already there, why not invite more people in?

Some of the discussion in the article suggested airport tourists are drawn by food and shopping. I also assume the terminals provide some other nice features: watching airplanes and a safe, controlled, clean environment. In all these senses, airports are then like shopping malls with options for dining, shopping, and entertainment all within a pleasant indoor setting. And having been in almost all of the airports listed above, newer facilities are definitely headed toward shopping mall status with large shopping and dining areas plus interesting amenities for people on the go. For example, Sea-Tac offers a large glass window for watching planes.

Now, if only those struggling shopping malls could find something as interesting as planes landing and taking off to attract visitors…

Strategies for renovating old downtown office buildings to compete with new towers

Pressure on office and residential space in Chicago’s Loop is coming from multiple angles, including the need for older buildings to adapt to modern office requirements:

Kamin said he expects more office buildings to find a second life as hotels or residential towers. “I don’t think there’s a successful path for some of these functionally obsolete buildings as offices,” Kamin said…

The high cost just to acquire a property presents relatively few opportunities for major overhauls, said developer Craig Golden of Blue Star Properties…

The venture took out a nearly $100 million construction loan in 2016, and converted the 20-story building into modern offices, branded as The National — a reference to the property’s 1907 opening as the home of Commercial National Bank.

The developers added the type of distinguishing feature that has helped properties thrive in recent years, creating the sprawling Revival Food Hall on the ground floor. The food hall brings in lunch crowds from throughout downtown, adding to the building’s vibrancy. Office tenants include co-working firm WeWork and the headquarters of Paper Source.

I have heard that it is often cheaper for companies to build a new big box store than to reuse and/or renovate one built by another company. Thus, problems with vacancies when companies close locations. Could the same be true for downtown office buildings – the cost of renovation is too high? I find this a little hard to believe given the difficult process that can ensue in order to construct a sizable building in a major city.

Similarly, the strategy of adding enticing dining options echoes what is happening with shopping malls expanding beyond retail to dining, residences, hotels, and a variety of entertainment establishments. The goal is to both promote multiple uses but also cross-traffic between organizations and business as people need to work, eat, enjoy life, and sleep.

Perhaps we will know there is really a problem when multiple older structures are torn down to make way for new buildings.

Beleaguered shopping malls face more closing stores

Shopping malls face multiple challenges, including more and more store closings:

It’s only April, but already this year more store closures — nearly 6,000 — have been announced than in all of 2018…

U.S. retailers so far have announced they will shut 5,994 stores, while opening 2,641, according to real estate tracking done by Coresight Research. That’s more locations slated to go dark than during last year. In 2018, there were 5,864 closures announced and 3,239 openings, Coresight said.

The planned closures include more than 2,000 from Payless ShoeSource, which filed for bankruptcy, hundreds from clothing retailers like Gymboree, Charlotte Russe, Victoria’s Secret and Gap, and discount chain Fred’s. Meantime, chains like Aldi, Dollar Tree, Ollie’s Bargain Outlet, Five Below and Levi’s are planning to open more stores…

With more store closures likely on the horizon, consumers can expect to start seeing hotels, gyms, apartment complexes, more food halls and grocery stores at traditional malls, turning them into more like city centers. The new Hudson Yards mall, which opened in New York last month, is the perfect example of this mixed-use model.

Before long, shopping malls may morph more into entertainment and public spaces than shopping spaces. In today’s world, it is not enough to cluster a bunch of national retailers together in an indoor or outdoor setting surrounded by plenty of free parking. The era of teenagers hanging out at the mall (and efforts to counter those gatherings) may be over. And it may not be only shopping malls that are in trouble; this may not be an issue of too much suburban sprawl. Rather, shopping districts all over the place, even in Manhattan, may be threatened. Some of these shopping areas will continue, particularly those surrounded by wealth or those that offer unique “cosmopolitan canopies.” Others will be transformed to the point that it will be very difficult to discern they were once shopping malls.

Furthermore, it will be interesting to see how these retailer brands disappear into the night or return in new forms or with new emphases or new money. Will Payless come back? Is Gap in its death throes and will its lessons be absorbed by companies taking up that same business space? Can Sears hang on another decade or even make a comeback?

 

When a mall needs reviving, add residences, mixed-use places, dining, and entertainment

As shopping malls face difficulties, there is now a common script for how to revive them. Aurora, Illinois is discussing what to do to help Fox Valley Mall and the proposed playbook exemplifies the new script:

That plan, unveiled last fall, called the Route 59 corridor “tired.” It noted that two of the four anchor spaces at the mall are vacant, with the departure of Sears and the closing of Carson Pirie Scott. People’s shopping habits have changed, it says, with people buying more of their items online instead of in person.

The plan suggests adding multifamily housing and “Main Street” mixed-use developments, with smaller stores in a pedestrian-friendly environment around the mall. That would beef up the mall’s potential customer base.

Market studies suggest adding more restaurants, particularly high-end ones. Entertainment venues, such as a theater and a public plaza several acres large, could be added.

Build it and they will come! Seriously, though, each of these proposed elements is intended to bring a different element to a flagging mall: more people, a different scale and harkening back to traditional shopping areas, and giving people more reasons to come to shopping areas through food and entertainment. Put these all together and it might create a new kind of synergy around the clock.

Of course, none of these are guarantees. And plenty of other shopping areas are trying this (just a few examples here, here, and here). Perhaps the best thing going for the proposed changes at Fox Valley Mall is its location just west of Naperville and plenty of nearby wealthy residents. While some shopping malls will not be able to be revived with these techniques, the Fox Valley Mall will likely change some and continue to do okay or even thrive.

Defining the suburban aspects of the movie “Eighth Grade”

Defining the suburbs, whether considering geography or social life, can be complex. So when the film Eighth Grade claims to depict “the tidal wave of contemporary suburban adolescence,” how is suburbia depicted? Here are some key traits according to the film:

  1. People live in single-family homes. Kayla is shown going from house to house and acts as if her bedroom is a personal sanctuary from the outside world.
  2. The story revolves around the lives of children, a key emphasis of suburban life. When not in a home, Kayla is at school. Her social life revolves around school. Family life is critical as the primary relationship Kayla has is with her father who tries at various points to encourage her.
  3. A land of plenty. No one in the film lacks for anything and all the teenagers apparently have phones and devices to connect with each other and broadcast their lives. Some people in the film have more than others but consumer goods are not an issue in the suburbs depicted. Everyone is middle class or above even though we see little of what people do for work.
  4. The shopping mall is part of a key scene, one of the iconic places where teenagers can interact and consume.
  5. There is a good amount of driving required to get from home to home or to the shopping mall.
  6. The teenagers and families depicted are mostly white.

On one hand, the movie depicts a fairly typical residential suburban place. Many of the features of the suburbs listed above are on my list of Why Americans Love Suburbs.

On the other hand, the film does a lot with Kayla engrossed with her phone and social media. Could this take place anywhere? Or, is the film suggesting the particular combination of suburbs and social media leads to a negative outcome (too much online immersion) or positive (the values or features of suburbia help give her a broader perspective about live)?

Furthermore, the film primarily works within a well-worn depiction of suburbia: largely white, middle-class and above, revolving around teenagers, school, and families. Thinking like a sociologist in terms of variables, would it have been too much to situate a similar story in a more complex suburbia with more racial/ethnic and class diversity and a different physical landscape?

Fox Valley Mall “near Naperville” Part 2 – development requirements

A store at Fox Valley Mall prefers to say they are “near Naperville” rather than the actual location in Aurora. How did this shopping center end up across the street from Naperville?

The Urban Investment and Development Corporation (UIDC) started purchasing property for a shopping center in 1966. At this point, Naperville was expanding to the south and southwest at a rapid rate but was nowhere near the size it is today. Similarly, Aurora had an established downtown but there was not a whole lot of development in this area. To help guide its growth, Naperville had developed regulations, particularly in residential subdivisions, to help ensure quality development.

In 1972, UIDC annexed the land they had purchased to Naperville. According to local officials in both communities, the developer chose Aurora in part because of fewer development regulations. Fallout from this choice ensued. Aurora and Naperville signed a boundary agreement to help limit such situations where a developer could play the two communities off of each other. The 1975 Naperville mayoral race included discussion of the loss of the mall. Additionally, the construction of the mall and the loss of status and sales tax money to Aurora helped spur Naperville leaders toward improving the community’s downtown. After the mall opened, Naperville was able to capture some status and money through the opening of stores on the east side of Route 59.

In sum, the developer of the Fox Valley Mall chose to locate in Aurora for some advantages in the early 1970s. Given the path of the two communities since then, I wonder if that developer would choose differently today. On one hand, a Naperville address would convey a certain status. On the other hand, locating just across the street might be the perfect solution: the developers could get benefits from Aurora while always claiming to be “near Naperville.”

Fox Valley Mall “near Naperville” Part 1 – status

I recently heard a radio ad for a store located at Fox Valley Mall which was said to be “near Naperville.” The mall is officially located in Aurora so why would a store there claim to be in the next suburb over? One word: status.

In this particular location, Aurora and Naperville are separated by Illinois Route 59. On the east side, containing a number of stores just across the street from the mall, is Naperville. On the west side, including the mall plus additional stores, is Aurora. Aurora is the bigger community – roughly 200,000 people – but Naperville is the wealthier, higher status community. Some of the figures: Naperville has a median household income of over $110,000 and 4.9% of residents are in poverty. In contrast, Aurora has a median household income of almost $64,000 and 14.0% of residents are in poverty. The communities also differ in race and ethnicity: Aurora is significantly less white (over 30%) and more Latino (35% more) and Black (5% more).

So, when a store says they are “near Naperville,” what are they trying to hint at? They want to associate their store and the shopping experience with a wealthier community rather than Aurora. They want people to think of an upscale and safe place, rather than the diversity of incomes and races/ethnicities of Aurora. Ultimately, they want shoppers to come and spend money like they have Naperville resources.

If it is the case that the store wants to associate with Naperville, why is it located in Aurora? The bigger question: why is the mall in Aurora? To be answered tomorrow.