Author Topic: Mall landlords struggling to find takers at a price they値l accept  (Read 642 times)

ergophobe

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Re: Mall landlords struggling to find takers at a price they値l accept
« Reply #30 on: June 20, 2018, 08:02:56 PM »
>>mall and sports stadiums and stuff are a joke

Have you read David Cay Johnston's book (it might be called Free Lunch... title has that in it)?

He points out that almost every one of these mall/stadium projects results in a net loss to the community - loss of jobs (mom and pops go out of business), loss of tax revenue (sweetheart deals for the new merchant, loss of straight tax from old merchant), etc. Typically, the only beneficiary is the mall or stadium owner and most of these projects would never have been economically viable on their own merits.

They are often rent-seeking schemes where the model is to convert tax revenue into personal revenue.

I wonder how much expiring sweetheart deals plays into all this.

Drastic

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Re: Mall landlords struggling to find takers at a price they値l accept
« Reply #31 on: June 20, 2018, 08:21:07 PM »
We have an old mall that was converted to county offices 2-3 decades ago. Great location with good parking, middle of downtown where parking is becoming an issue. They've just approved a 10 year plan to raze and build a 600 apartment/condo facility, 300 room hotel, parking garage, etc. with a new building for county offices.

The whole reason? To collect tax on the property.

Brad

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Re: Mall landlords struggling to find takers at a price they値l accept
« Reply #32 on: June 20, 2018, 09:10:34 PM »
>Free Lunch

I'm aware of it or it's findings. The guy is right.

Never bet everything on one flashy project.  The best, most enduring, development is not sexy but based on bootstrapping and is incremental.  Takes a long time but you avoid white elephants.

It has to pass the selfdogfood test: would I use it?  If you build something for yourself, something you would use, it goes a long way towards being enduring.

Mackin USA

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Re: Mall landlords struggling to find takers at a price they値l accept
« Reply #33 on: June 21, 2018, 09:51:15 AM »
"Destination Malls" are rare. South Coast Plaza is ONE
https://en.wikipedia.org/wiki/South_Coast_Plaza

https://www.travelcostamesa.com/pdf/CM_SouthCoastPlaza_map_directory.pdf

I had breakfast with Henry Segerstrom and others every Wednesday morning at 7:30 for over a year. It is all about politics.
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Brad

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Re: Mall landlords struggling to find takers at a price they値l accept
« Reply #34 on: June 21, 2018, 11:56:57 AM »
>destination malls

The very concept is unsustainable.  "Destination" lasts about 20 years and then becomes old hat and everybody has gotten bored with it or you have to continually up your game to keep it a destination.  And even when you up your game society changes and something comes along which undermines your business plan.  Ask Coney Island, Riverview etc.

Mackin USA

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Re: Mall landlords struggling to find takers at a price they値l accept
« Reply #35 on: June 21, 2018, 02:58:05 PM »
Brad:

There are no absolutes. There are exceptions to every rule.

South Coast Plaza has been there for 51 years.

The local economy and demographic have a lot to do with it - imo
Mr. Mackin
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