The Evolution of the Retail Mall Space

Have you been following the evolution of the retail mall space? The hot new retail mall of today is the pop-up centered space.

These centers are popping up across the country as part of a savvy business trend. The DTC e-commerce myth has been dispelled, and the most successful brands are incorporating both e-comm and brick-and-mortar into their strategies. Retail developers have gotten wise to the industry trend, opening centers designed to host short-term lease pop-ups that rotate throughout the year.

Take a look at centers like ROW DTLA, Platform LA and The Current at Boston Seaport by WS Development. Places like these represent empowering opportunities for small omnichannel brands as well as savvy investment opportunities for commercial real estate investors. For instance, operating partners are able to configure rent rates for specific times of the year. Rent may be higher during more in-demand selling seasons such as the holidays, and rent may be lower during slower sales seasons.

Why are these centers a success and why will we see more in the future? Experiential retail is at the heart of these developments, encouraging a sense of community, newness, excitement and increased foot traffic.

Local municipalities in conjunction with developers are looking at ways to add popup retail culture to their cities. This strategic endeavor supports local and tourist business. I'm excited to see how other markets outside of Los Angeles, New York City, Hamptons, Boston and San Francisco implement these strategies. Brands, its time to think about smaller markets, there are dollars there and less competitive retail space.