PREIT has seen a number of situations develop throughout its vast portfolio that screamed out for attention.In many different industries, it’s quite common to hear that the old way of doing things simply doesn’t work anymore. Technological advances have led to a ton of efficiencies, and changing landscapes have resulted in a shift in consumer preferences. That’s true in the world of shopping malls as well. The old way of doing things may not work in several different cases, but that doesn’t mean that there’s not something else right behind it that will work quite well.
For example, the old tried, and true formula of shopping mall success called for a venerable anchor - or several - that would draw the customers in. Fast forward to today, and the concept of the anchor as the only draw has become quite dated. Add in the fact that several of the retailers that can withstand the footprint required to be an anchor tenant are going through repositioning efforts of their own, and we have what amounts to a perfect storm.
So what’s a mall to do with all that space? For one example, you can follow an industry leader that’s being proactive in the face of change. PREIT has seen some situations develop throughout its vast portfolio that screamed out for attention. So what did PREIT do? The firm owned the situation, and they got out in front of the position to come out smelling like roses.
"PREIT was an early mover in its proactive anchor repositioning program and has found much success in attracting a diverse mix of tenants, indicative of the quality portfolio we have created," said Joseph F. Coradino, CEO of PREIT.
Just last year, PREIT was faced with the prospect of JCPenney vacating its anchor space at two of its properties. One of those spaces was quickly gobbled up by Dick’s Sporting Goods, while the other is now home to an entertainment facility known as Round 1 Entertainment. Similar plans are in the works for this year, as several anchors at its properties are shifting to welcome new tenants, and in some cases new concepts entirely.
"As the retail format lines continue to blur, we are capitalizing on owning quality properties in the best locations in their markets, capturing a wide variety of tenant interest. At the same time, we are systematically reducing exposure to select department stores, driving increased Net Operating Income and enhancing the consumer experience thereby creating long-term shareholder value and driving NAV," Coradino continued.