Retail REIT Simon Property Group, Inc. (SPG – Free Report) is making every effort to enhance the value of its properties. Recently, the company announced that it is set to collaborate with NHL Seattle, the group seeking on gaining an NHL franchise for the city, to develop team corporate headquarters and training center at the Northgate Mall.
The practice/training center, which will be developed within the center of the property, will include three full NHL-size ice sheets. One of these three will be for NHL Seattle team practice and use, while the other will be for other teams and community use. The third one will be for other community hockey and open skating use.
Notably, e-commerce has been curbing market share of store-based retailers, and retail REITs, like Simon Property, Kimco Realty Corp. (KIM – Free Report) , Taubman Centers, Inc. (TCO – Free Report) and Macerich Company (MAC – Free Report) are facing shrinking footfall, as well as alarmingly rising store closures and retailer bankruptcies. Amid these, Simon Property is investing billions to transform its properties aimed at creating multi-use destination to drive footfall at the company’s properties. The company’s transformational plan includes addition of hotels, restaurants, residences, offices and luxury stores.
Particularly, Simon Property is making concerted efforts to transform Northgate from a traditional regional shopping mall into a premium transit-oriented mixed-use center. In fact, Simon had announced its plan earlier this year for a multi-year, mixed-use transformation of Northgate.
The area is likely to benefit from the setting up of a light rail station in the summer of 2021, and Simon plans to develop more than 500,000 square feet of retail and commercial uses, 800,000 square feet of Class A office space, as well as up to 1,200 residential units and hospitality uses. The developments, enjoying proximity to transit, as well as I-5 visibility, multi-modal connections to the nearby neighborhoods and greater Northgate area, are likely to grab attention of tenants and enjoy high demand.
Ultimately, the aim is to transform retail shopping centers in a way such that these spaces appear as a one-stop destination where people can not only shop, live and work, but also entertain, socialize and exercise, and even visit doctors or relax at the spa. Eventually, such measures will likely help boost traffic and drive sales.
Simon Property currently has a Zacks Rank #2 (Buy). The company’s shares have appreciated 12.9% in the past six months against the industry’s decline of 4.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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