The store closings and retailer pullbacks that plagued malls last year have given way to a rush of openings this year.
Malls in Newport Beach, Santa Ana, Mission Viejo and elsewhere report a boost in leasing this year that has come earlier than expected.
“There’s a very good vibe,” said Nina Robinson, vice president of marketing and communications for Irvine Company’s retail arm. “The worst is behind us.”
There’s been an uptick in leasing at all of Irvine Co.’s shopping centers, including Newport Beach’s Fashion Island, Irvine Spectrum Center and The Market Place, which straddles Irvine and Tustin, according to Robinson.
“At Fashion Island alone, we’ve opened or signed eight tenants in the last couple of months,” she said.
Westfield MainPlace in Santa Ana, owned and operated by Australia’s Westfield Holdings Ltd., has seen seven stores open this year with a couple others on the way, said Zanne Augur-Daniels, regional marketing director.
“We certainly feel like things are going well for us,” she said.
Improving consumer demand, the better economy and marketing efforts have helped fill stores, according to Augur-Daniels.
“We are seeing and hearing about an uptick in leasing across the board,” said Jesse Tron, spokesman for the International Council of Shopping Centers in New York.
The boost in leasing is coming earlier than many people expected, according to Tron.
“Most people expected it to happen in the latter half of the year,” he said.
Still Cautious
The pace at which malls fill up depends on continued expansion by retailers.
Many still are being cautious, said Greg Palme, retail group audit partner in Deloitte LLP’s Costa Mesa office.
They’re holding off on expansions to see if consumer spending holds up, Palme said.
“We are seeing a lot of signals that consumer spending is stable and growing, albeit modestly,” he said. “Only time is going to tell how comfortable consumers are.”
Nordstrom, which recently opened a 138,000-square-foot store at Fashion Island, has helped lure tenants and boosted the number of shoppers, according to Irvine Co.’s Robinson.
New York-based clothing boutique Elie Tahari plans to open a West Coast flagship store at Fashion Island this summer. Forever 21 is expanding this summer into a former Circuit City space.
Fashion Island is expected to announce a replacement or two for a newly built space that gourmet grocer Dean & DeLuca was expected to occupy before pulling out late last year.
Irvine Co. is spending $100 million on Fashion Island improvements set to wrap up by the holidays.
“Improving on existing centers is going to be the trend,” said Tron of the International Council of Shopping Centers.
Construction of malls and major expansions are unlikely in the next couple of years, he said.
Indianapolis-based Simon Property Group Inc., which owns five local malls, including Brea Mall and The Shops at Mission Viejo, reported higher occupancy in its latest quarterly results.
The company’s Mills shopping centers, including The Block at Orange, are outperforming Simon’s other malls, the company said.
The Block at Orange, which lost a few stores in the downturn, including Hilo Hattie and Steve & Barry’s, signed trendy clothes store H&M, which opened last month.
The Shops at Mission Viejo saw a few stores leave during the downturn, including Mercer, Kenneth Cole and Gary’s Studio.
Recent openings include Microsoft Store, Farrell’s Ice Cream Parlour Restaurant and True Religion.
South Coast Plaza is opening a few stores this year, including bra boutique Intimacy, Free People and Herve Leger. In the former Clubhouse restaurant space, the mall signed on two eateries, Seasons 52 and The Capital Grille.
Stores that recently opened include Prada and Teavana, a tea and accessory store.
Buena Park Downtown had trouble luring stores even before the economy soured but has seen progress of late.
The mall revamped its lower level during the downturn to make way for last year’s opening of John’s Incredible Pizza, which has been doing well.
In February, Action Shoes opened at Buena Park Downtown in the former Steve & Barry’s space. Epilogue, a trendy clothing store, opened in April. Bandito Burrito opened this month.
“We continue to see increased demand for high-quality available space across our entire portfolio of shopping centers, including Buena Park Downtown,” said Marty Richmond, spokesman for Developers Diversified Realty Corp. of Ohio. n
