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