Overhaul on Tap at Fashion Valley As Centers Boost Non-Shopping Elements.
Mall owner Simon Property Group has a multi million-dollar renovation planned for Fashion Valley, San Diego’s largest regional mall and the latest locally to get an extensive overhaul as the venues look to lure shoppers increasingly buying online.
Renderings show enhancements to walkways, landscaping, dining and social spaces and other areas of the mall that the company said amount to the largest transformation to the more than 1 million-square-foot mall since the 1990s when a second story was added.
The plans draw inspiration from San Diego’s relaxed lifestyle and stunning aesthetics. Improvements include more open and inviting public spaces, with enriched landscaping, broader dining and gathering places, tranquil outdoor lounges, water features and state-of-the-art valet areas, concierge and personal shopping services.
"The proposed updates only seek to further enhance the overall guest experience and better reflect the San Diego lifestyle we all enjoy," Vicki Hanor, a regional senior vice president with Indianapolis-based Simon Property Group, said in a statement.
Malls across the nation are searching for ways to attract more shoppers to their properties as they compete with the growing prominence of online shopping. Adding more common spaces and experiential elements such as events and interactive services have become common as landlords and retailers try to offer options that can't be found through a phone or computer screen.
Local mall officials did not immediately return requests for further comment, and cost projections, tenants and other details were not immediately announced. Construction could start this month and be completed by 2021, and officials said mall stores will remain open during the work.
Fashion Valley, located in central San Diego’s Mission Valley neighborhood at 7007 Friars Road, was built in 1969 and most recently renovated in 2012. It is home to more than 150 tenants, including 50 that are exclusive within the San Diego market, such as luxury department stores Neiman Marcus and Bloomingdale’s.
Fashion Valley has been at near full occupancy for the past several years in the high-demand Mission Valley neighborhood, which has a current overall retail vacancy rate of 1.1%, according to CoStar data.
However, Simon Property Group has joined several local competitors in investing in significant overhauls of the region’s highest-profile shopping venues over the past few years. That’s included adding more social, dining and entertainment elements that visitors otherwise can’t find online.
Most recently, Westfield Group opened a newly built 300-unit luxury apartment complex at its Westfield UTC mall in the city’s University Town Center neighborhood. It is part of a series of overhauls to the 40-year-old property, totaling more than $1 billion, completed by Westfield over the past seven years.
Simon Property Group, the nation’s largest mall owner with more than 200 regional and outlet centers, said in its recent third quarter earnings report that its malls are currently 94.7% occupied. The company has $1.8 billion in mall developments and redevelopments under construction, in markets including Tulsa, Oklahoma, Minneapolis, Boston, Atlanta and others in Europe and Asia.
Article Via: Lou Hirsh | November 14, 2019 | CoStar
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