Real Estate Recovering, Retail, and Entertainment to Follow
Markets are in the midst of an earnings recovery thanks to publicly-listed real estate, or REITs (real estate investment trusts). That’s according to Calvin Schnure, Senior VP for Research & Economic Analysis at the National Association of Real Estate Investment Trusts (Nareit). In a recent editorial on Forbes.com, Schnure noted that while earnings were down as the pandemic began and persisted, today, as the world begins to emerge from the COVID cloud, earnings began to recover, tentatively for retail but better for other sectors. “Perhaps most important for the outlook for commercial real estate, however, is the recovery among the broader group of other property sectors. FFO (funds from operations) in this category rose $780 million from the second quarter through to the fourth quarter, recovering fully half of the decline that occurred during the shutdowns,” Schnure said. He added that as vaccine distribution increases it is likely that the second half of the year could see shopping, travel, restaurants, and entertainment approach pre-crisis levels.
Report: Current Mall Foot Traffic Shows Promise, Faith in Format
A new report suggests Americans are returning to what they loved: in-person shopping. And that could bode well as restrictions lift on gatherings indoors and the pandemic winds down. Research firm Placer.ai studied over 50 of the top tier malls in the country and found March 2021 was a “blockbuster” month, as visits increased 86% year-over-year. It should be noted March 2020 was when the pandemic began, but the report also found that according to a recent article on Connected Real Estate Magazine’s website, when compared to March 2019, the 2019 number was still an impressive increase of nearly 24%. “Does this mean the mall sector has completed its recovery? Certainly not. But it does mean that top-tier malls throughout the country still have exceptional strength. Their continued capacity to rebound quickly when given the opportunity speaks to the continued strength in the sector, and explains why the format still deserves its lofty position within the retail landscape,” noted Placer.ai VP of Marketing Ethan Chernofsky.
Fish and Life-size Lava Lamps Bringing Younger Crowds to the Mall
When a news report on a business news website begins with the words: “Seventy-foot spaceships and intergalactic tunnels,” then your humble e-newsletter editor knows this is the article for him. Though the article was not about the next film to invade the faraway Star Wars galaxy (editor’s note: the original trilogy is awesome, all the prequels stink, the third trilogy failed to deliver – discuss), it did hold my interest. Seismique is the new experience at Village at West Oaks in West Houston that was once Bed Bath and Beyond. The Mall of Louisiana just opened The Blue Zoo Aquarium where three retailers: Hollister, Gameware and Nawlins Sports once thrived. It’s all part of the “experiential retailer” trend and, in some cases, it’s literally taking retail by storm. “The expectation is that they will occupy large-store formats fewer traditional retailers will take while drawing crowds that spill into surrounding shops and boost a shopping center’s profile,” suggested Baton Rouge BusinessReport.com. It’s all part of the desire to appeal to younger audiences who would rather experience stuff than accumulating it. Is this the future of your local mall? Discuss
The Parks Mall at Arlington
3811 S. Cooper St.
Arlington, TX 76015
Website
Gross Leaseable Retail Area
1,510,888 sq. ft.
Year Opened
1988
Owner/Developer
Brookfield Properties Retail Group
Retailers Include
AMC Theatres, Barnes & Noble, DICK'S Sporting Goods, Dillard's, Forever 21, Kids Foot Locker, Leggings Park, Moda, Young At Heart, Edge, Infinite VR, Eyecare Pro, Tilt, Dallas Art Gallery, Wazzup Dog, Invicta, Spencer's
Summary
Located in what’s been dubbed “The Best Big City in the South,” the Parks Mall at Arlington is a lifestyle shopping center that features a carousel and NHL-size ice skating rink. The Parks Mall at Arlington serves a primary market population of 892,846 with an average household income of $81,948.
On DMM’s Blog: “Journalistic Gaslighting, Not A Retail Apocalypse”
Let’s not mistake evolution (the development of something from a simple to a more complex form) for extinction (coming to an end or dying out). The reports of a retail apocalypse are greatly exaggerated. To the contrary, government data speak to a retail ecosystem that is very much alive and well. Check out our latest blog entry, “Journalistic Gaslighting, Not A Retail Apocalypse,” from commercial real estate advisory services specialist Jeff Davenport, owner of Davenport Consulting.
