You want the recipe for retail success? Luxury and location, apparently

Exhibit A: Bal Harbour Shops in Miami Beach

TRD WEEKEND EDITION /
Feb.February 11, 2018 09:00 AM

Bal Harbour Shops. (Credit from back: Phillip Pessar; Christian Gonzalez)

While most malls are shuttering or downsizing, Miami Beach’s Bal Harbour Shops is expanding and there’s two reasons why.

Surrounded by luxury hotels and wealthy residents, the mall is a natural gathering place, albeit one with $30 valet parking. With 511,000-square-feet of luxury tenants, Bloomberg reports the mall turns a profit.

The culture among tenants also widely departs from the industry at large: in Bal Harbour, tenants are not on the verge of eviction trying to get breaks on rent; they’ve stuck it out on a wait list to get in and they might be out if shoppers grow bored of their offerings.

The luxury model has found success elsewhere: in New York there’s the Americana Manhasset on Long Island; in Las Vegas, the Forum Shops; and finally, in Los Angeles, there’s the Grove. In each, so long as the local neighborhood doesn’t change, the malls seem poised to last.

“Those malls in the densely populated, high-income sectors are continuing to thrive,” said Michael Brown for A.T. Kearney to the publication. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

Here are the week’s top luxury sales

Here are the week’s top luxury sales

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

166 E. 81st St. (Credit: Google Maps, iStock)

UES townhouse once described as “infested with vermin” goes into contract

Cadre founder Ryan Williams and Allen Smith

Cadre brings on former Four Seasons CEO as president

AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

arrow_forward_ios
Loading...