Facing lower occupancy rates, malls are getting creative about leasing kiosks, carts, and even vacant storefronts to short-term specialty entrepreneurs who would hawk calendars, stuffed animals, sunglasses, seasonal products, and other knick-knacks, according to a Wall Street Journal article. When times were flush, mall landlords treated these entrepreneurs almost as pests, but now, landlords are willing to take the chance on the clutter. According to real estate researh firm REIS, Inc., second quarter 2011 vacancy rates at malls in the top 80 markets was 9.3%, up from 9./1% in the first quarter 2011.
Specialty Retailing Report notes annual US speciality sales were $2.86 billion in 2010, up 10.6% from 2009, but still a miniscule part of the $1 trillion tradition retail sales of 2010, up roughly 3% from 2009.
And it's not just entrepreneurs with a cart. Top retailers like Toys R Us experimented with pop-up stores for last year's holiday season. They did so well, they will be back for 2011...and that will likely make mall owners happy to see spaces filled not only for the revenue, but for the appearance that the mall is worth visiting.
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