On the mall business today and plans for the future
I grew up in the mall business. My dad, Robert J. Congel, was a developer of warehouses and small retail centers in Upstate New York in the Sixties and Seventies. It was the beginning of the boom-time for large, enclosed shopping centers that served as mega-downtowns for folks living in a 20-to-30-mile radius.
He envisioned the potential for malls in our region and, in 1970, founded The Pyramid Companies. It became the largest privately owned developer of super-regional malls in the Northeast United States. Today, our Destiny USA property in Syracuse is the tenth largest enclosed mall in the nation.
Our operating philosophy was to have the biggest mall in every market we entered, located at the intersection of the major highway networks, and we wanted to include uses that didn’t typically go in an enclosed mall. In recent years, with so many department store anchors closing, most mall renovations include filling large open spaces with entertainment and food and beverage uses. That’s not a new idea at Pyramid. From the get-go, all three floors of Destiny USA were seeded with a wide variety of restaurants and experiential tenants, and we’ve implemented this leasing strategy across our portfolio.
Our formula for success at Pyramid is simple: Attract people from as far away as possible, entice them to stay as long as possible, and spend as much as possible. Entertainment, recreation and food and beverage options play an important role in getting shoppers into our malls, but it’s the wide variety of traditional retail stores that makes them stay longer and spend more. Traditional retail is still the lifeblood of our shopping centers and remains an important focus of our leasing efforts.
Twenty years ago, our malls had tenant mixes that included 90 to 95 percent traditional retail. Today that number is 70 to 75%, and we feel that is the sweet spot moving forward. The key is what you do with the remaining 25 to 30% and doing it in a way that benefits all tenants in your property.
As we actively evolve our existing portfolio, we are also working with our partners on new acquisitions to leverage our operating platform. With a longstanding track record of success in mall management, development, operations, and leasing, our best-in-class, in-house team brings a comprehensive, self-performed approach to every aspect of shopping center management. We excel at evaluating both properties and markets to identify the optimal mix of uses – whether it be retail, entertainment, dining, hospitality, or residential—to ensure the long-term financial health and vitality of each asset.
Pyramid has spent decades reimagining and remixing our centers for long-term success. A lease-up plan is more than just lines and logos on a page. It’s a strategic vision. Our strength lies in creatively curating the right tenant mix to drive revenue, enhance the customer experience, strengthen market relevance, and enhance the overall asset value—ensuring each property is optimized for sustained financial growth well into the future.
Stephen Congel is the CEO of Syracuse, N.Y.-based Pyramid Management Group
