Mall Renovations That Deliver ROI

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IRVINE, CA-Renovating existing inventory is the current development trend in shopping centers, as GlobeSt.com recently reported. But knowing how to do renovations that deliver strong ROI is key, and Craig T. Chinn, associate principal and head of KTGY's retail and commercial studio, offers some helpful hints on the subject.

“The retail market is fickle and is constantly reinventing itself,” says Chinn. “The developers that have embraced this and capitalized on the ability to provide a fresh, new product with speed to market are reaping the rewards.”

In the last 18 months, KTGY has completed 22 major mall renovations and repositioning projects, including Northridge Fashion Center in Northridge, CA; Medford Mall in Medford, OR; Bellis Fair in Bellingham, WA; and Pierre Bossier Mall in Bossier City, LA. The firm is currently working on the design of nine major mall renovation projects and 15 mini renovation projects across the US.

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Chinn says there are 10 areas developers need to consider for a successful mall-renovation project.

1. Design with a tenant in mind. If you are chasing an H&M, then show the renovation that looks like an H&M (i.e., large white exterior panels, lots of glass storefront, etc.)
2. Add exterior amenities to increase the “experience” from the parking lot to the inside of the mall (such as seating, canopies, trash cans and lighting).
3. New lighting. Replace the tired fluorescence that has the inconsistent yellow and purple lights with a consistent, fresh, more natural LED light (a brighter, better look that saves money).
4. Neutral paint schemes/palette. The tenants and shoppers should be the focus—not the common space of the mall.
5. New flooring that is not too busy or dark. Clean and fresh are what is in. Themed malls are going by the wayside.
6. Freshen up restrooms. The restrooms should feel clean, safe and void of smells. The lighting and new fixtures should shout “new.” This is a great way to keep shoppers in the mall longer. If they will use the mall bathroom facilities, they will stay longer.
7. Add food-service kiosk locations throughout the mall. In today's malls, you will see Starbucks, frozen yogurt, juice bars and pretzel shops. You no longer need to go to the food court to grab a bite. You can just grab something from the kiosk outside of Nordstrom.
8. Drought-resistant landscaping (looks great, low maintenance and saves water).
9. New signage, inside and out. A new sign says we did something, and often you can get a bigger sign because of changes at the city level.
10. New interior amenities. Add extra seating in larger centers. If the guys are comfortable and can sit, the family and wife will come shopping more. Spread seating out throughout the mall and with the new food kiosks (see #7), the need for more seating throughout the mall is a necessity.