"I believe the role of the department store will continue to diminish. I believe the role of the specialty store will continue to grow. I believe the role of entertainment will continue to expand. I believe non-retail uses will continue to populate the mall of the future," Bucksbaum says. "Consumers want more community and spirit in their malls. I believe the mall of the future will require different thinking from all of us."

GGP recently reported a 7% increase in first-quarter funds from operations to $1.03 per share. While total sales increased 7.5% in the first quarter, the same-store increase was 2.6%. First-quarter occupancy remained steady at 89% in its portfolio of 147 owned or managed shopping malls in 39 states totaling more than 116 million sf.

Bucksbaum's vision of the future prompted the REIT to pass on adding a fifth department store to a mall in Tucson, AZ, opting instead to go with a specialty retail and entertainment uses. "These are some of the changes we'll continue to push for in our shopping centers," Bucksbaum says.

However, department stores are slow to change, president and COO Robert A. Michaels adds, and change will not come overnight.

Meanwhile, GGP is experimenting with helping its mall retailers improve their productivity. Besides helping them with problems ranging from staffing to marketing, the REIT also is exploring Internet initiatives with them, Bucksbaum says. "The benefit to us is raising productivity in the store," says Bucksbaum, whose REIT has leases based partially on a retailer's sales.

Not that retail consultants should be overly concerned. "It's too early in the program to determine if it's going to be something we can sell," Bucksbaum adds.

GGP took a pass on acquiring stores or leases previously held by bankrupt Chicago-based retailer Montgomery Ward in its centers. The Target, May, Dillards and Saks chains acquired at least one store each in malls in the REIT's portfolio. "We've been pleased with who the acquirers have been," Bucksbaum says. "In all cases, it will help the mall."

While the REIT completed development and expansion projects totaling 334,000 sf and has nine other projects under construction, it is approaching other opportunities cautiously, preferring a substantial pre-leasing before moving forward. "I don't want to see us go back to the days of opening a project in the 60% to 70% range," Bucksbaum says.

Michaels says overall capitalization of available shopping centers range from just below 8% to more than 9%.