— By Katie Lee —
PREIT is redefining the role of malls by transforming them into vibrant community hubs.
As a premier developer and operator of retail and entertainment destinations all over the country, in some of the most sought-after, high barrier-to-entry MSAs, PREIT has long understood the importance of creating a “sense of place.” But with more than 6 decades of experience and a foresight to see beyond the traditional malls or power centers of its early years, today PREIT and its 17 premier properties offer so much more than shopping: they reshape the very communities in which they reside.
Today, a PREIT property can attract diverse businesses, which evolves traditional malls into vibrant mixed-use districts. New Jersey’s Cherry Hill Mall, for example, blends upscale retail with a range of dining options, while just 4 miles down the road, Moorestown Mall integrates essential and wellness services, like Cooper University Health Center — both creating dynamic environments that draw visitors for diverse uses. In the Washington, D.C., suburb of Fairfax, Virginia, Springfield Town Center is adding new entertainment options and community-focused events, which also showcases PREIT’s commitment to placemaking.
“Springfield Town Center is a prime example of this approach,” says Joe Aristone, chief revenue officer and executive vice president and head of leasing at PREIT. “This property integrates Class A apartments, a hotel and a recently opened LEGO Discovery Center, making it a key destination for family entertainment and exemplifying how PREIT fosters a dynamic environment that enriches the local community.”
This strategy enhances the mall experience but also makes these spaces essential destinations beyond shopping.
As PREIT looks to the future, it builds on lessons it has learned in the past. As one of the original pioneers of traditional retail, PREIT (Pennsylvania Real Estate Investment Trust) was founded in 1960 by Sylvan M. Cohen. Malls were still in their infancy. The first completely enclosed mall, Southdale Regional Shopping Center, had recently opened in Minneapolis in 1956. At the outset, PREIT originally focused on shopping centers in the Mid-Atlantic. Today, the company integrates a diverse array of tenants, from entertainment to dining and beyond, transforming traditional retail spaces into vibrant mixed-use lifestyle destinations that meet a wide spectrum of consumer needs.
PREIT’s strategically curated properties and commitment to community are at the heart of its vision for the future of retail. By designing spaces that cater to diverse needs — from shopping to essential services and entertainment — PREIT ensures that its properties remain vibrant and relevant in a constantly evolving retail landscape.
“This focus on community-centric design drives foot traffic for its retail partners and deepens the connection between the properties and the people they serve, including providing opportunities for local, small businesses to get their start and grow within the community,” Aristone explains.
Sometimes, for new businesses take root and grow, and for your property to grow with the changing times, you need to shake things up. In 2016, PREIT embarked on a proactive, portfolio-wide anchor repurposing effort. This ‘department store recapturing effort’ involved actively taking back underperforming department store space and replacing them with more relevant, modern experiences. Since the initiative began, PREIT has replaced 16 anchors across 10 properties with more than three dozen retailers.
“PREIT has an extensive history of replacing anchors,” Aristone says. “Our nearly $350 million investment in this endeavor has improved the credit profile of our tenant portfolio with additions like Dick’s Sporting Goods, Burlington, TJX, Five Below, Darden and more. This strategy has allowed PREIT to replace traditional anchor stores with a mix of tenants that align with modern needs, including entertainment venues, health services and grocery stores.”
Valley Mall, in Hagerstown, Maryland, now celebrating its 50th anniversary, is a prime example of PREIT’s anchor repurposing efforts and broader strategy to adapt to the evolving retail landscape. Over the years, Valley Mall has transitioned from a traditional shopping center into a dynamic community hub that meets a wide range of consumer needs.
“During a time when department stores were going dark rapidly, PREIT successfully replaced three anchors at Valley Mall with a truly diverse set of uses — a department store (Belk), a fitness club (One Life Fitness), a family entertainment destination (Tilt Studio) and a traditionally open-air tenant (Dick’s Sporting Goods),” Aristone says.
When selecting a ‘placemaking’ anchor, PREIT prioritizes tenants that can elevate the property’s role in the community by offering entertainment, experiential activities or serving as community gathering spots. The recent openings of Main Event and the LEGO retail store at Woodland Mall in Grand Rapids, Michigan, are prime examples. As part of its strategy, PREIT aims to deliver a variety of tenants that serve as unique destinations and activities for their communities, encouraging longer, more frequent visits further supporting its tenant base.
One of the most significant additions to Valley Mall is the recent introduction of Meritus Health, which fills the balance of a former anchor space along with Dick’s Sporting Goods. This 10,000-square-foot facility brings essential healthcare services, including physical therapy and sports medicine, directly into the mall, with plans to expand further in the future.
“This repurposing reflects PREIT’s commitment to diversifying its tenant mix and offering services that go beyond traditional retail, ensuring the mall remains a vital part of the Hagerstown community,” Aristone says.
In addition to healthcare, Valley Mall has incorporated a variety of dining options spanning sit-down and quick-service dining, entertainment venues like Regal Cinemas and Tilt Studio, and a mix of traditional and value retail stores. This blend of offerings not only enhances the shopping experience but also solidifies the mall’s role as a central gathering place for local residents.
When PREIT was founded in 1960, the three biggest department stores, both in sales volume and physical size, were Macy’s, Hudson’s and Marshall Field. It goes without saying, of course, that a lot has changed since then. But PREIT still leads the way in an ever-evolving industry — not just as a placemaker but as a changemaker.
Throw in a once-in-a-century pandemic and, well, that change vastly accelerates.
“PREIT stays ahead of changing consumer preferences by focusing on delivering value and convenience, as well as creating unique experiential retail environments,” Aristone says. “The integration of value-oriented retailers and essential services ensures that their properties remain convenient, one-stop destinations. Simultaneously, PREIT’s emphasis on experiential retail — such as entertainment venues and interactive spaces — attracts visitors by offering something that online shopping cannot replicate, keeping their properties vibrant and connected with consumer trends.”
Cherry Hill Mall, a 1.3 million-square-foot property in Cherry Hill, New Jersey, is the crown jewel of PREIT’s portfolio — and a great example of changing with the times. Since its opening in 1961, it has consistently evolved to remain a top shopping destination. With trending retailers like Abercrombie & Fitch, Sephora and Zara and recent additions, including Alo Yoga, Kendra Scott and Signature Workspace, the mall continues diversifying its offerings. Dining experiences like Eddie V’s and Kooma Asian Fusion & Martini Bar enhance the mall’s appeal as a place where visitors can shop, dine and gather, ensuring it remains a premier regional hub.
PREIT’s properties are deeply integrated into their communities. They serve as vibrant spaces that highlight and support local businesses, non-profits and community organizations. For instance, Cherry Hill Mall co-hosts an annual Food Truck Festival in partnership with Kamp for Kids, raising funds for children with autism. Additionally, the malls organize initiatives like the “Holiday Giving Tree,” which collects gifts for families in need during the holiday season. Through strategic partnerships and community-focused events like job fairs, seasonal celebrations and charity drives, PREIT enhances both the social and economic fabric of the areas they serve, strengthening community ties and contributing to the overall vitality of the region.
“The future of traditional enclosed malls will continue to evolve into dynamic, multi-use environments that extend far beyond shopping,” Aristone says. “PREIT’s properties will continue to evolve by focusing on immersive and thoughtfully designed environments that resonate with consumers on a deeper level. This approach ensures that malls remain vibrant, relevant and integral to the communities they serve — even as the retail landscape continues to change.”
— This article originally published as the October 2024 cover story of Retail & Restaurant Facility Business magazine. If you have a cover story idea, please contact the editor, Katie Lee, at [email protected].