PB Mall Update--fyi

Palm Beach Mall to undergo revitalization

Palm Beach Mall loses Dillard's, but Ikea may come in

By Paul Owers South Florida Sun-Sentinel

September 23, 2008

The Palm Beach Mall opened 41 years ago as the largest enclosed shopping center in the Southeast. Patrons flocked there in search of trendy fashions at Jordan Marsh and offbeat gifts at the Barefoot Mailman.

But today the West Palm Beach center is little more than an eyesore.

The 1.2 million-square-foot mall, just east of Interstate 95 on Palm Beach Lakes Boulevard, is filled with unrecognizable merchants and empty storefronts. Crime has been a problem in the area. And many tenants, including Dillard's, are leaving as the mall's owner prepares for a long-promised renovation designed to revive the ailing center.

"It's desolate. It brings down the whole community," said Bruce Corn, a retail real estate broker in West Palm Beach. "But if you bring new tenants in, you'll get that middle- and upper-class customer to go shop there. That is some of the best commercial real estate in Palm Beach County."



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Palm Beach Mall history Despite the ideal location, the once-thriving mall fell out of favor as residents moved north and west starting in the 1980s. Regional malls later sprouted in Palm Beach Gardens and Wellington to accommodate the growing number of rooftops in those cities.

Indianapolis-based Simon Property Group said three years ago that it would reinvent the Palm Beach Mall but only recently provided details.

The company said this month the project would include more than a million square feet of general retail space, a 290,000-square-foot furniture store, 300,000 square feet of offices and 500 residential units.

Simon spokesman Les Morris wouldn't elaborate on the plans or discuss possible tenants, but community leaders say the furniture store is Ikea, the popular Swedish chain that opened in Sunrise last year.

Cynthia Cohen, head of a national retail-consulting firm in Miami, said Ikea would be a "real game-changer" for the center. Other analysts agree.

"Ikea absolutely will transform that area," Davie retail consultant Beth Azor said.

West Palm Beach Mayor Lois Frankel said Simon likely will turn the mall into an outdoor plaza but keep anchors JCPenney, Macy's and Sears. The work will be done in phases so that the mall could stay open during construction, Frankel said.

Simon plans to ask the city to approve the project late this year or early next.

"Palm Beach Mall has been part of the fabric of this community since its construction in 1967," Simon said in the statement. "SPG ... plans to redevelop it in a way that will be attractive and the best use for residents, tourists and tenants alike."

The redevelopment won't include Dillard's, which will close in late October, only eight years after it agreed to serve as the centerpiece of a $40 million mall renovation. It's one of 15 underperforming stores the Arkansas-based retailer is shuttering nationwide.

Dillard's opened at the Palm Beach Mall in 2000, ahead of Borders Books & Music, DSW Shoe Warehouse, For Your Entertainment and Old Navy. None is still there, and smaller tenants have lost their leases.

Workers at the remaining stores read magazines or stand out in the mall, waiting for business. Even the few customers bemoan the lack of activity.

"It goes downhill more every day," said Juan Velasco, 27, as he waited on a bench while his wife got her hair cut.

Even after the planned upgrade, the Palm Beach Mall will face competition from nearby shopping centers, CityPlace and other retailers, including a rebuilt Target store opening in 2009 across the street. But the rundown mall can be a destination once again, the mayor insists.

"I think they're going to bring new life to the mall," Frankel said of Simon. "I certainly think the customer base is there if they have the right kind of product."

Paul Owers can be reached at powers@SunSentinel.com or 561-243-6529.