Tag Archives: shopping malls

Empty stores at the mall? Fill them with data centers

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Here is one new solution to vacant stores at the shopping mall: use the space for data centers.

In Fort Wayne, Ind., a vacated Target store is about to be home to rows of computer servers, network routers and Ethernet cables courtesy of a local data-center operator. In Jackson, Miss., a former McRae’s department store will get the same treatment next year. And one quadrant of the Marley Station Mall south of Baltimore is already occupied by a data-center company that last year offered to buy out the rest of the building.

As America’s retailers struggle to keep up with online shopping, the Internet is starting to settle into some of the very spaces where brick-and-mortar customers used to shop. The shift brings welcome tenants to some abandoned stretches of the suburban landscape, though it doesn’t replace all the jobs and sales-tax revenue that local communities lost when stores left the building…

Many malls and neighborhood shopping centers are still grappling with vacancies five years after the recession. The average mall vacancy rate hovers around 5.8%, according to market researcher CoStar Group, the same level as in the third quarter of 2009. Strip-mall vacancy sits at 10.1%, down from 11.5% five years ago. Rents are down too. Asking rents at malls have fallen 16% over the past five years, while strip mall rents declined 12%, according to CoStar…

Converting retail properties isn’t simple, however. Data-center operators have specific needs for their properties including access to heavy-duty fiber optic communications cables and reliable and affordable power access. The buildings need to be able to withstand tumultuous weather, from hurricanes to tornadoes. Windows are a negative.

An interesting use of space. Since presumably some of these empty stores are in malls where there still are open stores, how exactly do these new data centers interact with their surroundings? Probably not very well if they are windowless.

Converting the first shopping mall into micro-apartments

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An indoor shopping mall/arcade built in 1828 in Providence, Rhode Island has recently been converted into micro-housing:

Known as Westminster Arcade when it opened in 1828, the building marked the debut of English indoor shopping concept in the United States. Designed by architects Russell Warren and James Bucklin, the Greek Revival stone structure more resembles a courthouse than a shopping mall, what with its stately Ionic columns and sunlight-filled atrium with its glass gable roof. Shoppers browsed three floors of shops—or at least that was the idea; they never seemed willing to trudge up the stairs to the second and third floors…

The mall was nearly razed in 1944, but preservationists intervened, and it was spared. In 1976, the arcade was designated a National Historic Landmark, though businesses struggled. Even its 1980 renovation didn’t help much, and it ultimately closed in 2008…

Work on the $7M project wrapped in October 2013. Granoff retained the retail spaces on the ground floor and rented them to retail busineses. These commercial spaces are enclosed by bay windows so sound doesn’t drift to the residences above. Inspired by ship construction, each of the 38 rental units—which measure from 225 to 300 square feet—includes a bedroom, kitchen, bathroom, and built-in storage. The homes on the second floor even have guest accommodations in the form of a twin Murphy bed. The Providence Arcade also contains eight larger apartments, a game room, storage spaces, and laundry machine…

Micro apartments are not for everyone—in fact, their clientele are “young kinds that just graduated.” They “are at the bottom-end of the totem pole and don’t have that dining room set that grandma gave them,” Abbott said. “They travel really light. They might have a bike and two suitcases.” The Providence Arcade’s dwellings have also attracted keepers of the shops downstairs as well as second homeowners seeking a place to stay when they’re in town. Rent starts at $550 a month, but future residents better get in line—there is already a waitlist.

If all micro-apartments looked like this, I imagine their popularity would grow. A number of demographics might want a relatively cheap yet newly constructed housing unit within an interesting historic building. Looking at the pictures, i wonder if there is a thriving “street-life” present within the arcade given the retail shops and residences; this would just be a bonus.

To allow Claire’s, Naperville makes ear piercing legal in the downtown

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Since Naperville’s zoning laws did not allow body piercings, it recently changed the provision about ear piercings for a new Claire’s downtown:

Naperville will now allow ear piercing to take place within its borders, but other body piercing remains prohibited.

The move came after a request from Claire’s Boutiques, Inc., which recently opened a shop in downtown Naperville. The company estimates it performs 3.7 million ear piercings annually at its stores around the world.

City councilmen voted 7-0 in favor of removing ear piercing from the definition of body piercing in city ordinances.

Zoning laws are often used to keep undesirable uses out of a community. For a relatively wealthy community like Naperville (median household income around $101,000), places that do body piercing do not project the kind of image the city desires. Many places will not allow spaces for tattoo parlors but apparently body piercing businesses also have some undesirable traits. I’m now curious how many suburbs don’t allow businesses to do body piercings, particularly ear piercings.

So why would Naperville reverse itself? Two things could be at play: a new business opened downtown that would benefit from changed rules and ear piercings don’t exactly conjure up the same negative images as other body piercings might. While it sounds like this change was because of Claire’s, a relatively non-threatening place more associated with shopping malls and young female consumers (adding to downtown Naperville’s mall-ification), I wonder if anyone else will take advantage of this change and promote a different kind of image than Claire’s.

Wrigley Field and the suburbanization of sports stadiums

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Cheryl Kent looks at the proposed plans for renovating Wrigley Field and concludes it makes the ballpark less urban:

The trouble is the Cubs are also pitching a plan for a kind of baseball theme park that pretends to authenticity while proposing to damage the integrity of the real deal: Wrigley Field. The Cubs want Ye Olde Baseball Mall, except with a Jumbotron and a rival entryway to the stadium…

The proposal is modeled after the “festival marketplace” approach launched in Boston with the renovation of historic Faneuil Hall as Faneuil Hall Marketplace by Benjamin Thompson in 1976. In a series of legendary projects, including work on Navy Pier in the mid-’90s, Thompson enticed people to visit the cities by promising safe, orchestrated experiences, with an emphasis on charm over authenticity and spontaneity.

In time, and as cities regained cachet, the marketplace approach came to represent a suburban take on cities that downplayed genuine urban diversity and vitality while assuming a defensive, apologetic crouch when it came to design.

Thompson was brilliant and a visionary, producing work more nuanced than subsequent formulaic applications reflect. But his work was driven by a condition that has disappeared — white flight to the suburbs. The planned renovation of Navy Pier, intended in large part to downplay its carnival aspects, is evidence the formula is outdated.

In other words, the proposed plans are a Disneyfied version of Wrigley Field and truly urban areas. It might look urban but it is a theme park version meant to encourage consumerism. This reminds me of sociologist Mark Gottdiener’s book The Theming of America as well as the work of other urban sociologists about public spaces. Genuine public spaces, like the ones Elijah Anderson talks about in The Cosmopolitan Canopy, allow all people the opportunity to enjoy and interact. In this proposed Wrigley Field, it is all about the Cubs and expanding their revenue base.

Kent doesn’t say as much about how the Cubs might renovate Wrigley Field to better fit with the city. The biggest problem here seems to be that the Cubs are likely to insist their changes are necessary because they will cover the costs of the renovation as well as make them money. Sports team owners don’t exactly have a good record of truly caring whether their teams and properties fit with the city.

Zara devotes its full marketing budget to leasing expensive retail space near high-status brands

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Here is a way retailers can take advantage of space: locate near high-status stores.

How about advertising? Basically, Zara doesn’t do it. There is no ad budget. Instead, the company spends ungodly amounts of money buying storefronts next to luxury brands to own the label of affordable luxury:

“The high street is really divided according to brand value,” says [Masoud Golsorkhi, the editor of Tank, a London magazine about culture and fashion], who is also a consultant for fashion brands. “Prada wants to be next to Gucci, Gucci wants to be next to Prada. The retail strategy for luxury brands is to try to keep as far away from the likes of Zara. Zara’s strategy is to get as close to them as possible.”…

Zara stores cozy up to the most famous brands in the world to sing their luxury ambitions even as they profit off a brilliant, cheap, short supply chain that delivers similar fashion at a much lower price.

In this case, proximity matters. By being located near prestigious brands, Zara is pulled up more to their level. Additionally, shoppers willing to wander into the really high-status stores might then also wander into Zara. This seems to be the strategy of the shopping mall as well: utilize several important anchor stores (or anchor facilities/restaurants in “lifestyle centers“) to help bring in more customers who will then also visit other stores along the way.

I wonder: are there any streets or malls where retailers have found ways to expressly disallow stores like Zara? Imagine a high-end outlet mall where there are only high-end retailers and no middle-brow stores or aspiring stores are allowed. Leasing prices is one way to do this but this article makes it sound like firms like Zara can do an end run by paying those big sums and then not spend money on traditional marketing.

Innovation: four McMansions built on top of a Chinese mall

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Here is one possible solution to running out of open land: build houses on top of other structures.

The Chinese city of Zhuzhou, the second largest in the province of Hunan, is being pressed under the tremendous pressure of growth. Home to many a manufactory and textile mill, residents are seeking new ways to live close to work while preserving the spaciousness of the countryside. Thus, these wonderful photos of McMansion-style housing atop a five-story shopping center in the central district of Zhuzhou.

The four houses are perched above the city, invisible to street-level action. They do not cast a shadow on the ground, and seem to exist solely in the rarefied world of smoggy skies, with scenic views into the apartments surrounding their airy enclave. Though the landscaping around the houses leaves something to be desired, the overall approach is one we’d like to see replicated on blank and bare urban roofscapes everywhere. Now that’s mixed-use development.

Think of the views!

Too bad we don’t have interviews with those who bought or live in these homes.

I know this looks unappealing and I’m sure there are some structural issues (like how do these homeowners get off the building) but on the other hand, why not? If space is at a premium, this is a solution…perhaps not the best but a solution for those who have to have such a home.

Shopping malls as glamorous places in India

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After fifty plus years of living with the shopping mall, perhaps they have simply become second nature to Americans. But, when they are built in places like India, it is fascinating to see how the mall fits into a different context:

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The shopping malls that track your shopping patterns

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Two shopping malls are starting a new program where they track the shopping patterns through shopper’s cell phone signals:

From Black Friday though to the end of the December, two malls in southern California and Richmond, Va., will be following shoppers by tracking their cell phone signals. When somebody walks out of the Gap, into the Starbucks, out through the Nordstrom and on to the Auntie Annes pretzel stand, the mall will be monitoring.

Creepy? Maybe. But the information is anonymous and won’t be used to target individual shoppers. Instead, it’s part of a quiet information revolution among retailers to figure out how crowds move, where they cluster, and what stores they ignore. Tracking crowds isn’t new. Tracking crowds through their cell phones is.

If you’ve got a problem with malls paying attention to your smart phone, you might want to stay away from the mall for, say, the rest of your life. The future of shopping, according to retail analysts I spoke with for a recent special report, is malls and phones talking to each other.

When I saw this story last week, my first thought was “what took so long?” This doesn’t sound too different than what is going on while you surf the Internet: there are a number of people very interested in the data generated by your browsing and shopping patterns. You the shopper/browser are in a closed system and you are a very valuable data point. This is also a reminder that shopping malls are not public spaces: just like large stores, retailers and mall operators want to funnel you in certain ways such as past the food court (good smells can be positive for spending money) and past a number of attractive displays, advertisements, and storefronts (all meant to get you to open your wallet and act upon unrecognized desires).

One other thought: I wonder how shoppers at a mall might fight back. How about turning off one’s cell phone while inside? How about walking in “unusual patterns,” whatever that might look like? How about boycotting malls that practice this? How about using this as another rallying point for shopping local – they can’t (or at least shouldn’t) track you while shopping on Main Street. How about forcing malls that do this to post signs about what exactly they are doing? If the shopper does indeed have valuable information and money, why not get some concessions from the mall operators who would like to have this data?

The Main Streetification of shopping malls

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Perhaps you have seen the advertisements for Small Business Saturday – it will be fascinating to see if this campaign works. While the national retail market is not good overall, this piece suggests that “Main Street [is] making a comeback at the expense of the shopping mall.”

In short, the most successful malls usurped the role of Main Street as the commercial and even cultural center of the communities they served.

Now, however, many shoppers want Main Street back.

Development of new malls has almost completely stopped, with only two being erected in the country since the beginning of 2009, according to the International Council of Shopping Centers.

Outdoor town center concepts, featuring brick sidewalks, streetlights and even public clocks evoking the Main Street of yore, are climbing to a degree that many owners of enclosed malls are considering dramatic makeovers, some including plans to tear off the roof of, or “de-mall” enclosed shopping centers.

I feel this headline is a bit misleading: we’re not talking about a return to traditional downtowns. Rather, it is taking older shopping malls and adding “older” elements, creating a 21st century facsimile of what retailers and Disney want you to think old downtowns were like (but with modern amenities). This isn’t that different than the strategies a lot of older downtowns have pursued in order to become a little more mall-like. Perhaps the real story here is that we are moving toward an amalgamation of shopping mall and downtown where people want to purchase the latest and greatest but really feel like they are in a community setting. Perhaps we could call these new facilities “Main Street malls.” (Though I wonder how these are different from some of the new “lifestyle centers,” particularly the New Urbanist ones.)

I am a little miffed that the article provides little evidence that shoppers really want “Main Street malls.” Are developers not building malls because they are not needed or have the tastes of shoppers changed?

The widespread (yet sometimes controversial) use of tax rebates for development in Illinois

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It is common practice in Illinois for communities to give tax rebates to firms and companies to locate within their community. The primary reason: it ends up bringing in more sales tax revenue.

Communities throughout the region and the state share sales tax revenues to woo retailers — and they are within their rights to do so under Illinois law. In fact, rebate researcher Geoffrey Propheter found the rebate programs to be more heavily used in Illinois than elsewhere around the country.

For the most part, these programs have flown under the radar until this summer, when the Regional Transportation Authority, the city of Chicago and Cook County legally challenged a variation on their use. In lawsuits, they alleged Channahon and Kankakee used sales tax rebate agreements to divert sales tax collections unfairly from metro Chicago to small “sham offices” in their lower-tax towns — allegations denied by both communities.

With a spotlight now directed at sales-tax rebate programs, some observers are quick to say they stand behind the more common use of rebate programs to attract big-box stores and auto dealers…

But other observers say the programs can skew economic development efforts toward retail. This can be effective in filling city coffers but may not produce as much regional economic growth as office or manufacturing developments, which tend to have higher-paying jobs and an ability to sell products over a much wider geographic range.

The rebate programs also tend to foster bidding wars between towns, with taxpayers picking up the tab. Propheter, a research assistant at the George Washington Institute of Public Policy, found the rebate offers have been used in border skirmishes around the state, from Belleville, outside St. Louis, to southwest suburban Joliet.

This is not a new story: states and communities across the United States have been engaging in such battles for years. In most places, governments are looking out for themselves and have little incentive to participate in regional planning or cooperation. Particularly today, in an era when many municipalities are desperate to find some extra money, providing incentives for developments likely looks attractive.

It would be interesting to know why this has become such a popular tool in Illinois.

Critics of sprawl argue that this helps feed sprawl. Communities look for ways to bring in easy money and big box stores and strip malls are relatively cheap to build. It is also interesting to see what happens when sprawl moves past these communities and the big box stores become less attractive and the new ones are even further out from the city. Shopping malls and big box stores tend not to age well.

Several examples of this come to mind:

1. Some of the verbal back-and-forth between Illinois and several other states, including Wisconsin, Indiana, and New Jersey, over the increasing tax rate in Illinois and casino revenues.

2. The story of how the Fox Valley Mall came to be in Aurora. The story is that the developer played Aurora and Naperville off each other in order to get a better deal for developing land on either the east or west side of Illinois Route 59. Naperville was not as willing to negotiate – and things were looking relatively good for them with the relocation of Bell Labs and a Amoco research facility along I-88 in the 1960s – and the developer picked Aurora. Naperville knew that it had lost a significant source of revenue. To compensate, city leaders turned quickly to drawing up plans to revitalize their downtown, putting into action a plan that suggested building a park along the river (put together a few years later as the Riverwalk), grouping municipal buildings in the downtown (new City Hall, new downtown library), and beautifying some of the streets (see Jefferson Avenue and Jackson Avenue between Main Street and Washington Street). I wonder how the story would be told today in Naperville if their downtown hadn’t become a destination.