CBL Properties (CBL - Free Report) is making every effort to boost traffic at its malls, in pursuit of which, it recently announced the addition of entertainment operator — Dave & Buster’s — at Hanes Mall in Winston-Salem, NC.
Construction of the latest Dave & Buster’s location is in progress on the lower level near Sears. It will likely open in 2019, offering more than 30,000 square feet of entertainment. This would include several arcade-style games, chef-crafted food and beverage menu, as well as a D&B Sports Bar filled with lots of HDTVs.
Headquartered at Dallas, TX, Dave & Buster’s Entertainment Inc. (PLAY - Free Report) is engaged in operation of 115 high-volume restaurant/entertainment complexes across North America.
Moreover, last month, CBL Properties initiated redevelopment at the Jefferson Mall in Louisville, KY, to include a new entertainment place — Round1 Bowling & Amusement. The building, previously occupied by Macy's, Inc. (M - Free Report) , is currently under construction. The developers have planned a grand opening for Round1, which is scheduled to occur prior to this year’s holiday season.
Such redevelopment efforts are aimed at diversification of properties, as well as battling mall traffics blues which have brought in bad news for retail REITs like GGP Inc. (GGP - Free Report) , Kimco Realty Corp. (KIM - Free Report) and others over the past several quarters.
In fact, with e-commerce grabbing market share from brick-and-mortar stores, retailers are compelled to reconsider their footprint and eventually opt for store closures, while others unable to match up with competition have been filing bankruptcies. Amid these, tenants are also demanding substantial lease concessions, which, however, mall landlords find unjustified.
Nevertheless, retail landlords are making concerted efforts to boost productivity of retail assets by trying to grab attention from new and productive tenants, and disposing the non-productive ones. Also, with limited retail supply, refurbishment of existing properties is gaining traction.
Retail REITs are now avoiding dependence on apparel and accessories, and rather expanding their dining options, opening movie theaters and fitness centers, as well as offering recreational facilities, in particular.
Such efforts are expected to bring the sparkle back in the sector and with the recent tax overhaul likely to benefit wages, consumer confidence and consumption levels, demand for prime properties are anticipated to remain decent, moving ahead.
Moreover, shares of this Zacks Rank #3 (Hold) company have outperformed the industry over the past three months. While the company’s shares have rallied 38.6%, the industry has grown 8.0%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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