NORTH OLMSTED, Ohio — Are shopping malls on their last leg and nearing extinction?
It’s a question consumer experts have been asking for years.
However, recent data shows indoor and outdoor malls are actually showing positive gains and nearing a comeback here in Northeast Ohio.
With higher vaccination rates, baby boomers preferring in-person shopping, and a millennial generation loving nostalgia, some experts and investors believe we may have turned a corner in the retail landscape.
Take a walk through Great Northern Mall in North Olmsted and you can’t help but notice the rush of shoppers, vibrant retail spaces, and holiday decorations.
It’s the glimmer of hope and turnaround point Dan Crandall, Marketing and Business Development Manager of Great Northern says they’ve been longing for.
It's a welcome moment in an era where so many malls have shuttered operations or rebranded toward mixed outdoor use.
“They’re coming back to the malls. They wanna touch, feel and experience it—especially with the holidays this time of year!” said Crandall.
In the days when so many were shopping online due to the pandemic, 2022 actually brought a noticeable change.
More than a dozen new stores opened in the nearly 50-year-old North Olmsted staple.
Yilmaz Goral saw promise in the customer base there and decided to invest and open high-end, luxury furniture store "Zebrano".
It's the first in the area, enticing shoppers from near and far.
“You never know what’s gonna happen to you tomorrow. So, I took a chance. You’re here," said Goral.
Over in Strongsville at SouthPark Mall, foot traffic and shopping are surging.
At least 25 new leases have been secured for various businesses over the last year.
"We have new restaurants opening, new retail stores, opening new entertainment venues that give people more and more reasons to come. So that kind of success builds here," said Carmen Spinoso, Founder and CEO of Spinoso Real Estate Group.
Real estate brokerage firm CBRE forecasts shopping malls will experience a 10 year high for leasing and investment in 2022.
In fact, Simon Property Group which is the nation’s biggest mall owner reported an increase in its occupancy and rents from 92.8% to 95%.
The company also highlighted e-commerce/online shopping has slowed to a degree.
However, Coresight Research projects 25% of the country’s 1,000 malls will likely shutter in the next three to five years.
Michael Goldberg, an Associate Professor in the Department of Design and Innovation at Case Western Reserve University's Weatherhead School of Management says there is promise in this current moment.
He says Northeast Ohio's infrastructure supports malls.
However, the pandemic proved many folks could live without them.
"I think the recent news of increased investment interest has to be seen as a let's call it--a slight positive. Things are where investors are saying, 'hey, let's invest in this and stock prices are rising, that shows optimism,'" said Goldberg.
Over time though, Goldberg says economic uncertainty will continue to change the investor landscape.
However, mall officials say another huge part of their recent success is filling store vacancies with new innovative concepts that community members want to try out.
This means getting creative for the long term and pivoting.
Great Northern Mall now offers 1st Team Actors Studio on camera training--evolving holiday displays and hyper-local events for all ages.
“The community is one of our biggest focuses here. Public art this past year has been great and people enjoy that," said Crandall.
The National Retail Federation forecasts sales will jump by as much as 8% for holiday shopping.
However, with inflation, experts say it's not necessarily a major change because the stimulus money is no longer available to shoppers.
Mall investors report foot traffic is back to pre-pandemic levels and that too shows promise.
