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62 COMMERCIAL CONSTRUCTION & RENOVATION — MARCH : APRIL 2016 INDUSTRY EVENTS SUMMIT COVERAGE • Mall anchor re-purposing Presentation by: James L. Harkin, AIA, LEED AP, Senior VP, Principal, FRCH Design Worldwide T he American mall, frst developed and designed in the early 1950s, was to be used as a focused, indoor gathering place for consumers to have access to hundreds of retailers all at once. Department stores, as anchors to these malls, were the stars of the developments, projecting the main draw for consumers and con- trolling the majority of retail sales in the United States. Today, there are less than a thousand malls in the United States, with most in a state of repositioning. The department store category continues to decline and con- dense, now with only 22 major brands between the fve categories of department stores. These brands include the sectors of upscale, middle market, regional, suburban and discount. Paced by acquisitions and consolidation, there are around 17 owners of these 22 brands. As many of these department store chains are declining and consolidating, there are many anchor department stores going dark. Mall owners are searching for a variety of ways to repurpose them. There usually are three options: demolish the building and redevelop the land, convert the box to a new single tenant or divide the box into a multi tenant building. While some anchor stores are single story, most are two- to three-story buildings, which add to the challenge of repurposing. There are advantages and disadvantages with each of the three options, but the biggest challenge for mall owners is that the new retailer, or multiple retailers, is demanding brand expression and James L. Harkin, AIA, LEED AP, is a senior vice president and principal for FRCH Design Worldwide. entries on the mall exterior side. This goes against the basic intrinsic principal of getting the consumer inside the mall frst, which provides the opportunity to view most of the other retailers. Having an entry/ exit to a tenant without needing to go into the mall proper eventually will reduce traffc for other retailers to parlay. Additional challenges in converting these former anchors include the following: • Obtaining Anchor approval • Signage approval by anchors and zoning • Possible new parking/grading requirements • Building code issues – (anchor versus non-anchor) • Upgrading of existing utilities • Restroom upgrades • New loading dock requirements • New exterior public space requirements There will be several hundred vacant anchor store buildings at malls in the next two years, with many more to be added. Devel- opers and department store must be creative and entrepreneurial in their approaches to re-purposing these spaces. With change, comes great opportunity for new niche retailers and new architec- tural designs, which if done properly, can enhance an existing mall for many years to come. CCR As many of these department store chains are declining and consolidating, there are many anchor department stores going dark. Mall owners are searching for a variety of ways to repurpose them.