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CONTINUED: Filling Vacant Retail Boxes Requires Thinking Outside The Box
<br />tenants. Nail Scarred Hands," another congregation, worships in free-standing, 11,297-square-foot former
<br />twin screen movie theater next to the mall that has served as church incubator, hosting three churches
<br />over the last 12 years that ended up outgrowing their space and relocating. One former tenant, Voice
<br />Ministries, recently took over a 60,000-square-foot former K-Mart after making extensive improvements
<br />to the former big box facility.
<br />"We recently sold a mall in Memphis that had been hit by a tornado to a church that was interested in
<br />occupying half of it and keeping the other half retail," added Bemis. "We'll keep a couple anchors and the
<br />balance will be the churches' community services."
<br />RECREATIONAL /FAMILY FUN USES
<br />This category can get interesting. Bingo Halls or Bridge Clubs are not uncommon. Indoor children /family
<br />fun centers are also popular as replacement tenants -- think bouncy houses, indoor mini-golf, roller
<br />skating, bowling, play structures and ball pits, arcades, laser-tag arena, birthday party centers and the
<br />like. These tenants are candidates for small spaces all the way up big box spaces. Costar recorded at
<br />least 30 leases in this category over the last six months.
<br />In a recent article on The Infrastructurist.com, Oberlin College professor Julia Christensen said, "When I
<br />give speeches, audiences always love to hear about the Spam museum, which is in a renovated Kmart
<br />building in Austin, Minnesota and also the story of the RPM Indoor Raceway, which is a go-kart track in a
<br />renovated Wal-Mart in Round Rock, Texas." .
<br />FITNESS USES
<br />Examples
<br />While often downplayed by brokers and store owners as "non-ideal", fitness tenants have become a much
<br />more common fixture at shopping centers than in the past, said our experts. This category is widespread,
<br />from national and regional chains taking over vacant big box spaces, to local and franchise users opening
<br />up specialized fitness instruction spaces (dance, martial arts, personal trainers, and yoga are examples)
<br />and weight loss clinics. Costar has recorded nearly 350 leases in this category over the last six months
<br />"For those considering a fitness center, I caution them to take a hard look at the financial stability of the
<br />company," said Bemis, who said it is not uncommon to see such tenants turnover more frequently than
<br />others. In one example, Bemis said, "We took a dark Steve & Barry's at Town Mall in Westminster, MD
<br />and cut it up. We put a Gold's Gym in the back and saved the mall frontage and main road visibility to do
<br />small shops. I think that's a trend that will continue."
<br />SECOND-HAND /OVERSTOCK
<br />Examples: Thrift Stores, Consignment Stores, Second-Run Cinemas, Used Furniture, Used
<br />Books/CDs/Video Games, Antiques, used sports equipment, Bakery Outlets, "Scratch-n-Dent" /Overstock
<br />item Retailers, Pawn Shops
<br />With tightened pockets, consumers are much more willing to sell, trade, or buy their "gently-used" items;
<br />they still want to go to the movies, but are willing to view films that have been out for a while already, sit
<br />in older seats, and deal with below-par picture and sound; and being they're on the lookout fora "great
<br />deal", they don't mind buying dented cans of food or "irregular" merchandise.
<br />"I've heard that business is booming at Plato's Closet," said Bemis, referring to a popular teen clothing
<br />consignment store. Costar recorded at least 30 consignment store leases over the last six months, as
<br />well as at least 20 thrift shop leases, plus 32 leases signed by Goodwill alone, and another 15+ antique
<br />store leases. Pawnshops, while often considered among the least desirable tenants, continue to sign
<br />leases -- our search yielded at least 15 signed in the last six months.
<br />SEASONAL/TEMPORARY
<br />Examples: Mall Kiosks, Holiday Goods Retailers, Annual Inventory Liquidators
<br />With vacancy on the rise, landlords have become more willing to consider signing temporary tenants, as
<br />Copyright (c) 2009 Costar Realty Information, Inc. All rights reserved.
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