Mall owners are leveraging non-retail services to drive shopping center foot traffic, including fitness centers, movie theaters, and now coworking.
Mall vacancy rates have reached 9.1% in the US, a seven-year high. Many have shut down altogether due to declining foot traffic.
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But while lower-tier malls in less desirable locations are struggling to adapt, luxury malls in affluent areas continue to bring in customers with new shopping center formats.
Specifically, mall owners are focusing on non-retail experiences and activities (i.e. fitness centers and movie theaters) to turn their shopping centers into multipurpose destinations.
Their newest strategy? Coworking at the mall.
bringing coworking to the mall
Shopping center owners are teaming up with coworking startups to transform their malls into places where customers can do more than just shop.