LAS VEGAS-Whatever you do, don't go telling Joseph Coradino, president and CEO of PREIT, that the American mall is dead. He calls the notion “Almost silly,” as he did in this exclusive interview from the floor of the RECon convention here. He does, however, say that there is a major transformation taking place, one that indeed will keep the concept of the enclosed mall relevant for a long time.
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Q: So we all come to RECon with a new excitement about the retail market. What are you seeing?
A: This is quite an exciting convention for us. We have a robust list of tenants and we come here on the heels of two major transactions. The first is signing Century 21's first store outside of the New York metro (In April, PREIT signed the fashion retailer to space in the redeveloping Gallery in Philadelphia) and our first Uniqlo deal (part of a portfolio of deals, PREIT signed the apparel retailer at Willow Grove Park in Willow Grove, PA in May). Uniqlo is going to be an important part of our business as one of the expanding international retailers into the US.
(See the full video interview at the end of this story.)
Q: We've heard so much about the death of the mall. But the informed consensus is what we're seeing is a transformation. What's your take?
A: The phrase “The Death of the Mall” is almost silly. The mall is the major shopping venue in this country, unquestionably. There is a transformation taking place, and it is to improve the mall, taking it from a pure shopping venue to more of an experiential venue, including restaurants, entertainment and the Internet experience. It's becoming much more than just a place to shop.
Q: As a result of this transformation, then, are you seeing a shift in tenancy?
A: We're beginning to see a shift to restaurants and entertainment as key components of the shopping experience. A number of our properties have incorporated restaurants, and when we look at the performance of three or four restaurants in a mall, we see them driving sales as much as the department stores, and they're not competitive purchases. So restaurants are a great addition.
Q: You had a great first quarter. What are you seeing for PREIT in the coming months?
A: We're very excited about two major transactions, one was the acquisition of Springfield (VA) Town Center (from Vornado). This property is being redeveloped and it has gained a lot of tenant interest, and there will be some announcements soon. And the Gallery, which I mentioned before. We have a very bright future, especially through 2015. Beyond that we look at the long-term more cautiously.
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