Tenant Update

People in rural counties like yoga and gourmet burgers, too, but towns like Quincy, Illinois, don’t show up on the population density charts of many hot new franchising companies.

Malls are not going away entirely, but the word “mall” may be an endangered concept.   CBL Properties, one of the nation’s biggest mall operators, with 121 of them in 27 states, has announced a rebranding campaign that that reflects a new strategic direction focused on operating community gathering places, not mere shopping centers.  

Uniqlo is opening a shop in one of the nation's most historic train stations.    The retailer will open its newest U.S. outpost on Oct. 10, at Union Station in Washington, D.C. It will be located on the main level, adjacent to Amtrak ticketing, and will open at 7 a.m. during the week to serve morning commuters.  

With department stores being replaced by gyms and office space, retail tenants who signed on for the traffic generated by traditional anchors are of the opinion that the co-tenancy clauses in their leases need restructuring. At a forum staged by Jones Lang LaSalle at its New York office yesterday, two noted mall developers agreed.  

Art Van Furniture will take over a 34,000-sq.-ft. space vacated by H.H. Gregg at Gurnee Town Center in Illinois, according to owner Retail Properties of America, Inc. The electronics chain filed for Chapter 11 bankruptcy protection earlier this year.   Art Van will bring the center to 98% occupied, according to RPAI, joining DSW, Old Navy, Starbucks, Ross Dress for Less, Five Below, and Bath & Body Works at the center west of Waukegan.  

Rue21 is looking towards the future.    The retailer announced Friday that it has completed its financial restructuring and has emerged from bankruptcy. The chain filed for Chapter 11 bankruptcy protection in May 2017, listing $307 million in pre-petition assets. It filed a month after it said it would close 400 stores.   "We are pleased to be moving forward with rue21's next chapter of growth as a highly performing and distinctive retailer," said Melanie Cox, CEO of rue21.

The continued popularity and development of town centers and lifestyle centers have made it clear that retailers can no longer go it alone. They must co-exist in a symbiotic live-work-play environment, and that means they must also co-exist with the different demands and cost structures of residential and office spaces.  

PREIT announced that it has fully leased the space vacated by Sears at Magnolia Mall, nine months after the store closed shop at the Florence, South Carolina, property.   Burlington opens in a 46,000-sq.-ft. space there this week. It will be joined by HomeGoods (20,000 sq. ft.) and Five Below (8,500 sq. ft.) in the spring. Also slated to open at that time is a 20,000-sq.-ft. H&M store.