Retailers are embracing urbanism with zeal
As enclosed malls continue to decline and close, more and more retailers are opting to locate in pedestrian-friendly urban districts.
3 years ago, I expressed sentiments that the car-oriented shopping mall was a business model with no future. The events since have offered further proof that retailers and customers now prefer an urban format, at least in our region.
Recent news that Bloomingdale's in White Flint and Macy's in Laurel will close has little to do with the sales performance of those stores, and everything to do with their host malls being unable to survive. Both have been visibly declining for years, and will soon be redeveloped into mixed-use walkable urban places.
The Laurel Macy's has managed to remain open for years despite much of its host mall being shuttered. That store would likely have closed years ago if it wasn't making money, especially in the wake of the Great Recession.
Similarly, if it had not been profitable the White Flint Bloomingdale's would have closed in 2007 when another location of the luxury retailer opened a mere 3 Metro stations away.
Within the Favored Quarter, the most economically competitive and healthy part of our region, only the largest and most dynamic enclosed malls are continuing to thrive. The rest are slowly dying.
In Maryland, Montgomery Mall is the most vibrant, while in Virginia the Tysons cluster reigns supreme.
When the White Flint redevelopment plan was approved in 2010, it provided the owners of White Flint Mall the opportunity to earn a healthier profit by giving the market more of what it wants: walkable urbanism.
Elsewhere in the region the malls are doing as bad or worse. Most have either closed or are in the process of being converted to walkable town centers.
Arlington has had success turning the area around its two enclosed malls into mixed-use towns, first at Ballston and now at Pentagon City, where the process is still under way.
In Prince George's County, the area around the Mall at Prince George's (formerly Prince George's Plaza) has been undergoing a process similar to Pentagon City. At Bowie Town Center, County officials are looking at adding more entertainment and housing options.
Meanwhile, urban shopping areas that I mentioned three years ago have increased in prominence:
In the District of Columbia, there are four shopping districts that support clusters of national retail chains that are usually mall-based: Downtown (Old Downtown clustered around Metro Center), Connecticut Avenue between Farragut Square and Dupont Circle, Friendship Heights, and Georgetown. Columbia Heights is emerging and has a different mix of retailers.Urban-format suburban shopping districts also continue to thrive and grow.
Silver Spring's retail is more vibrant than ever. The space vacated by Borders was quickly filled by Smart Toys. Bethesda and Clarendon are continually adding to their mixture of chains and smaller upscale retailers. Wheaton is a work in progress.
Even outside the Beltway, urbanism is catching on. Rockville Town Square and Gaithersburg's Washingtonian Center are growing, and National Harbor is setting the standard for Prince George's County. Two decades ago, all those developments likely would have been enclosed malls.
While purely car-dependent malls aren't going to go completely extinct, they are becoming far more rare. In the future, it is likely the only enclosed malls that remain will be the largest super-regional "winners" inside the Favored Quarter. Meanwhile, no new malls are planned.
As the 21st Century continues, both living and dead mall sites will be either be completely redeveloped or will evolve into mixed-use walkable urban places. Retailers will continue clustering at transit-oriented, walkable urban locations, both downtown and at new suburban "uptowns."
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