2020 has turned out to be quite draining for shopping centers. According to JLL, the vacancy rate of commercial real estate increased by 5.4%, largely due to the departure of tenants from shopping malls with outdated concepts.
It is possible to change the situation and attract tenants to the shopping mall without its radical restructuring, but with the help of local redevelopment and redesign. Old shopping centers have shortcomings in the organization of the internal space, which lead to a decrease in traffic in the malls and, as a result, to a drop in income and the departure of tenants. Among the main ones experts call “small” lease spaces, complex navigation, outdated and therefore unattractive design. However, the most important thing is the absence of "vertical" links.
There are several ways that can be suggested to increase the profitability of an existing shopping mal without major restructuring.
Redevelopment of the interior
Narrow, insufficiently lit corridors, a "chaotic" set of small shops - all these are signs of an outdated shopping mall. Therefore, it is worth redeveloping the interior space by increasing the rented space and expanding the corridors. This will allow attracting larger and more "high-end" tenants to the shopping center.
Outdated shopping malls are often planned "horizontally": visitors basically move within one level, which they get to from the entrance. The lack of "vertical connections" in a building reduces the flow of visitors and the profitability of spaces on other floors. It is possible to form such vertical connections inside a mall by organizing end-to-end atriums that will be clearly visible from different points of the building.
There are certain trends in the design of spaces as well. Design that has lost its relevance can also become a negative factor for a shopping center. A clear functional zoning of the shopping center, creation of modern navigation, formation of a design code for decorating stores, creative lighting solutions - all this will allow us to “modernize” the project, make it more productive and pleasant for the buyer to visit. Thus, all this will contribute to an increase in the average time of presence in a shopping center, which will also have a positive impact on commercial success.
In modern shopping centers we can usually observe spacious, well-designed entrance lobbies that are clearly visible from the street. This allows attracting spontaneous visitors to the shopping center. Arrangement of wide entrances and beautiful entrance groups will also help modernize the old shopping mall and receive additional traffic.
Recreational area around the shopping center
Creation of a recreational zone in front of the entrance to the shopping mall, even if it is small, will make it a center of attraction for the residents of the area. And it will also increase traffic due to spontaneous visitors.
New functions of the shopping mall
Today shopping centers are becoming centers of regional life. In addition to the shopping and entertainment part, a shopping mall can accommodate event venues, city and municipal organizations that attract an additional target audience that is difficult to attract with other features.
All these measures allow to significantly increase traffic in the shopping center, which will entail an increase in tenants' incomes and, as a result, the possibility of an increase in the rental rate. According to experts, after such measures the rate may rise by 20-25%.