America's next real estate trend

Posted on June 15, 2010 by David Leazenby

mixed-use-mall-300x248It’s no secret that there is an oversupply of retail space in America. Look around at the empty storefronts and vacant anchors at your nearest mall. Or, perhaps you didn’t notice since you may be one of the many that haven’t visited a mall recently. As reported in the most recent ULI issue of Urban Land, vacancies at super-regional malls in America stood at a record 8.8% at the end of 2009 according to Reis. The shopping trends in America are shifting dramatically as consumer spending is down, purchases made online are up, and people gravitate toward more recreational activities instead of visiting a mall. While there are some benefits to society in today’s changes (ie. higher savings rate, more informed consumers and more community involvement), there are also real negative consequences to our cities by having empty retail spaces. Some neighborhoods are losing their identity as long-time retailers have gone out of business, property tax revenue is falling and city services are being scaled back.

What does the mall of the future look like? Some people are planning for a seamless integration of the technology in your hand, the products you seek, and the stores nearby that have them. Also, there was Westfield’s announcement last week about a virtual mall in Australia. These are interesting ideas to consider for the user experience. But what about the actual physical mall itself? How do you think it will change?

This entry was posted in Retail and tagged real estate, retail trends, mall, virtual shopping

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