How CBL Properties Is Transforming Retail Properties into Suburban Town Centers

CHATTANOOGA, TN—CBL Properties recently announced progress on its redevelopment initiative to transform its retail properties into suburban town centers with, amongst other amenities, the addition of new in-demand uses. New offerings include dining options such as The Cheesecake Factory and Portillo’s; fitness outlets such as O2 Fitness and Gold’s Gym, plus discount retailers HomeGoods, Five Below and Marshalls.

“Our approach to redevelopment is not cookie cutter and each project is based on the current and projected demand in the market,” says Stephen Lebovitz, CEO, CBL Properties. “Our vision is to transform our properties from traditional enclosed malls into suburban town centers that offer a variety of uses. As part of our redevelopment projects, we are pursuing more dining and entertainment venues such as The Cheesecake Factory and Dave & Busters. We are adding casinos at two properties, which is the ultimate combination of dining and entertainment, and have the potential to spur additional development around each site. We will also include more fitness uses, value-oriented retail, service, medical and in certain markets multi-family, hotel and office uses.”

Over the course of 2018, CBL completed nine redevelopment projects totaling 260,000 square feet.

“The company’s strategy, since formation, has been to own the dominant retail property in our markets, which means our entire portfolio is well-positioned for redevelopment. The properties’ enjoy excellent real estate and generate demand from a variety of users. When we are in the planning stages of a redevelopment, we look at which new- uses best meet the needs of the market and evaluate cost, return and synergies with the rest of the property,”says Lebovitz.

CBL’s overall redevelopment strategy has mirrored larger trends in the industry as retail landlords incorporate more entertainment, dining, fitness and other non-retail uses into projects.

Its Sears redevelopment at Brookfield Square in Milwaukee, Wisconsin, is an excellent example of the industry’s shift. As a part of the project it are adding a luxury dine-in movie theater, WhirlyBall, a fitness outlet and two restaurants. Additionally, the city purchased a portion of the Sears parcel and is building a hotel and conference center, which will generate excellent cross-traffic with Brookfield Square, Lebovitz tells GlobeSt.com.

Additional redevelopment trends includes adding supermarkets and casinos to replace former department stores spaces plus establishing hotels, residential and storage facilities in under-utilized parking fields.

Headquartered in Chattanooga, TN, CBL Properties’ portfolio is made up of 114 properties totaling 71.9 million square feet across 26 states.