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Simon Property (SPG) & Life Time to Create Athletic Resort
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Retail REIT – Simon Property Group Inc. (SPG - Free Report) – recently joined forces with privately held, comprehensive health and lifestyle company and brand, Life Time, for changing consumer experience at Southdale Center in Edina, with a planned athletic resort. It would include rooftop pools and beach club in addition to broad spectrum of healthy living, entertainment amenities.
Specifically, a three-level, 120,000 square-foot athletic resort will come up at the redeveloped space where the current J. C. Penney Company, Inc. store is positioned. The resort is expected to open in early 2019. This move is aimed at eventually enhancing value of the Southdale Center.
In Apr 2017, Simon Property announced that Life Time is expanding its operations in Houston at The Galleria, in the earlier Galleria Tennis & Athletic Club space (GTAC). (Read more: Retail REITs GGP, Simon Property Collaborate with Life Time)
Such ventures with Life Time come at a point when mall traffic has been declining due to a change in shopping patterns, with online shopping taking precedence over in-store purchase. As a result, demand for retail real estate space has been diminishing of late, as changing shopping patterns are compelling retailers to reconsider their footprint, and eventually opt for store closures or file bankruptcies.
This has become a pressing concern for the retail REITs like Simon Property, GGP Inc. , Kimco Realty Corp. (KIM - Free Report) and others. In fact, over the past six months, the Zacks categorized REIT and Equity Trust – Retail industry incurred loss of 9.7% compared with the S&P 500’s gain of 8.5%.
Amid this, mall landlords have decided to go to the mattresses. They are avoiding heavy dependence on apparels and accessories, and transforming their boring shopping hubs into swanky entertainment zones. The mall landlords are expanding the dining options, opening up movie theaters, offering recreational facilities and transforming the former anchor spaces to create complete, resort-like healthy living and entertainment destinations.
Ultimately, the aim is to transform retail shopping centers in such a way that they appear as a one-stop destination where people can not only shop, live and work, but also entertain, socialize and exercise and even visit their doctor or relax at the spa. Eventually, such measures are likely to help in increasing traffic and drive sales.
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Simon Property (SPG) & Life Time to Create Athletic Resort
Retail REIT – Simon Property Group Inc. (SPG - Free Report) – recently joined forces with privately held, comprehensive health and lifestyle company and brand, Life Time, for changing consumer experience at Southdale Center in Edina, with a planned athletic resort. It would include rooftop pools and beach club in addition to broad spectrum of healthy living, entertainment amenities.
Specifically, a three-level, 120,000 square-foot athletic resort will come up at the redeveloped space where the current J. C. Penney Company, Inc. store is positioned. The resort is expected to open in early 2019. This move is aimed at eventually enhancing value of the Southdale Center.
In Apr 2017, Simon Property announced that Life Time is expanding its operations in Houston at The Galleria, in the earlier Galleria Tennis & Athletic Club space (GTAC). (Read more: Retail REITs GGP, Simon Property Collaborate with Life Time)
Such ventures with Life Time come at a point when mall traffic has been declining due to a change in shopping patterns, with online shopping taking precedence over in-store purchase. As a result, demand for retail real estate space has been diminishing of late, as changing shopping patterns are compelling retailers to reconsider their footprint, and eventually opt for store closures or file bankruptcies.
This has become a pressing concern for the retail REITs like Simon Property, GGP Inc. , Kimco Realty Corp. (KIM - Free Report) and others. In fact, over the past six months, the Zacks categorized REIT and Equity Trust – Retail industry incurred loss of 9.7% compared with the S&P 500’s gain of 8.5%.
Amid this, mall landlords have decided to go to the mattresses. They are avoiding heavy dependence on apparels and accessories, and transforming their boring shopping hubs into swanky entertainment zones. The mall landlords are expanding the dining options, opening up movie theaters, offering recreational facilities and transforming the former anchor spaces to create complete, resort-like healthy living and entertainment destinations.
Ultimately, the aim is to transform retail shopping centers in such a way that they appear as a one-stop destination where people can not only shop, live and work, but also entertain, socialize and exercise and even visit their doctor or relax at the spa. Eventually, such measures are likely to help in increasing traffic and drive sales.
Currently, Simon Property carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>