Posted August 17, 2010 Reviving America's Dead Malls
By Seth Fiegerman
The Galleria Mall used to be one of Cleveland’s main shopping hot spots, with dozens of bustling shops spread throughout the two-story building, but that all started to change around 2002 as the economy suffered through a brief recession.
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Last year, Poole began working on a more ambitious project to transform the Galleria Mall from a dying retail space into a greenhouse that would not only help educate the city about healthy food, but provide it. Earlier this year, the project, dubbed Gardens Under Glass, received a $30,000 grant from Cleveland’s Civic Innovation Lab.
Now, rather than gorge on salty pretzels, fountain sodas and fast food, shoppers can take advantage of a weekly market full of fresh produce and greens. And that’s just the beginning. “We have a salad bar that will open next month and we have some green cleaning products that are coming in soon,” Poole says. “We hope that this will attract more business.”
Poole’s project is just one of many that is transforming the function and feel of malls as we know it. In cities throughout the country, dead and dying malls are being redesigned to serve community functions as medical centers, arts centers and much more. In Tennessee, the Tri-County Mall shut down and re-opened as a large church. Similarly in Colorado, a dead mall was repurposed to serve as a housing development. Several malls across the country with vacant space have even installed small indoor water parks to liven things up. In other cases, old malls are simply being swapped with other retail businesses like car dealerships, big box stores and flea markets.
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For much of the past decade, publications have speculated the era of malls may be nearing an end in this country, and indeed there seemed to be lots of evidence to back up this theory.
Between 2007 and 2009, more than a fifth of the nation’s 2,000 biggest malls closed up shop. To make matters worse, only one new enclosed mall had opened up in that time.“A tremendous amount of overbuilding took place in this country. If you go down any highway in America, there are stores everywhere,” says Howard Davidowitz, chairman of Davidowitz & Associates, a New York-based consulting company for the retail industry. “America is tremendously overstored.”
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According to Davidowitz, just because the shopping center’s business crumbles doesn’t mean the owner is suddenly out of options. “The real value is in the raw land,” he said. “What you’re losing money on is the operation of the mall, so it may make sense to try and monetize the land, either through a hospital, condo development or anything else that you believe the community needs.” But it wasn’t until a few years ago that mall owners actually took advantage of this option, and it wasn’t entirely by their own volition
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http://www.mainstreet.com/article/small-business/franchises/what-do-dead-mall?cm_ven=msnetzeroDeadmalls.com