Michael Tanenbaum has an interesting article, Could King of Prussia Mall become a place to call home?, which looks at some of the development ideas being considered by Simon Property Group Inc for the old JC Penney department store.
Simon is the largest mall landlord in the country and owner of the King of Prussia Mall. Currently, they are working on ideas for the
The article mentions that Simon has a vision that the King of Prussia mall could grow into something like Hudson Yards.
Eather than replace JCPenney with another distressed retailer, Simon president and COO Rick Sokolov told Bloomberg believes the property can be utilized as a suburban version of Manhattan’s Hudson Yards:
Sokolov declined to divulge details of the proposed plan for the mall. On a conference call with analysts in October, CEO Simon said the project could include a hotel, apartments and office space, and had the potential to increase the property’s value from $2 billion to more than $3 billion.
Located on Manhattan’s West Side, Hudson Yards is a sprawling complex of high-end apartments, restaurants, offices, parklets and retail shops. It is the largest private real estate development in American history and the largest in New York City since Rockefeller Center.
Finance-Commerce.com has an interesting look at the King of Prussia mall redevelopment plans as well, Mall-owner Simon looking beyond retail.
King of Prussia Mall, a 2.8 million-square-foot shopping wonderland northwest of Philadelphia, is the type of destination center that mall defenders say can defy the rise of online shopping. It’s a sprawling complex that houses stores from all corners of the retail universe, more than 50 food venues and a concierge lounge. Yet it still has to grapple with today’s reality, such as a J.C. Penney that shut down in July and left a hole in a key anchor spot.
It’s a sign of the times that even King of Prussia — which ranks in the top 3 percent of malls in the country, according to Green Street Advisors — is turning what was once retail space into other uses. With the rise of e-commerce imposing a rapid reckoning on retailers and their landlords, mall owners are turning to everything from restaurants and bowling alleys to apartment buildings and hotels to internet-proof their properties. Retail landlords have spent $8 billion in the past three years on updates that focus on experiences that can’t be found online, according to brokerage Jones Lang LaSalle Inc.
One thing is for certain. There will be tremendous opportunity in the retail to redevelopment area as e-commerce continues to change how people shop and live.