Is Fairlane the next mall to die?

[iheartthed]

I went to Fairlane two days before Christmas and the mall was almost completely devoid of shoppers. It was the first time I had been there in several years. Driving up to the mall I knew something was off since at least 75% of the parking lot was empty. When I got inside I was the only person shopping in many of the stores I stopped at. The foot traffic looked more like a slow summer afternoon than the day before Christmas Eve. Even in Sears there seemed to be more workers than actual shoppers -- and not really that many of either group -- so I ended up buying a video game partly out of pity.

Is this the next mall to die? I haven't been to any of the other inner ring malls in a very long time, but I always thought that Fairlane was the strongest of that group. Are Northland and Eastland doing worse than this?

[Eric_c]

I was at Fairlane a week before you and it was packed. While I'm just pulling this out of my ass, I wonder if the large Muslim poulation in Dearborn didn't just decide to stay home to avoid the perceived throngs of Christmas shoppers.

[Bham1982]

I have noticed this too. Fairlane, while still a long ways from dead, is in pretty steep decline.

Oakland is also in pretty bad shape. Prior to the Somerset Expansion in the mid-90's, Oakland was one of the strongest malls in Michigan, and had the best and most profitable Hudson's in the state. Nowadays Oakland is a dump. Last time I was there I saw three youths led out in handcuffs.

[R8RBOB]

I went to Fairlane two days before Christmas and the mall was almost completely devoid of shoppers. It was the first time I had been there in several years. Driving up to the mall I knew something was off since at least 75% of the parking lot was empty. When I got inside I was the only person shopping in many of the stores I stopped at. The foot traffic looked more like a slow summer afternoon than the day before Christmas Eve. Even in Sears there seemed to be more workers than actual shoppers -- and not really that many of either group -- so I ended up buying a video game partly out of pity.

Is this the next mall to die? I haven't been to any of the other inner ring malls in a very long time, but I always thought that Fairlane was the strongest of that group. Are Northland and Eastland doing worse than this?

If you had told me 25 years ago that Northland would be an endangered mall, I would call you a liar but at the end of 2011 Northland is an endangered mall.

The same fate awaits Fairlane because the quality of goods sold has gone to shit. Let's use clothing as an example. Most of the clothing sold in stores are now being made overseas and the quality is very questionable. Thanks to places like China-Mart and Target selling their Asia-made products at a low cost, why bother to go the mall to pay more for the same cheap shit.

[Zacha341]

Well I hope it is not dying as it is one of the few mall I go to once in a while. The key to FL is to go in the right door near the store you plan on shopping at. Otherwise it can be a bit of a maze, but I like its somewhat compact layout with the three levels.

[Bham1982]

IMO, all inner ring malls are declining somewhat. No inner ring mall is stronger now than 20 years ago.

I'm pretty sure Fairlane had Saks and Lord & Taylor not too long ago. Can you imagine those upscale stores considering Fairlane nowadays?

[iheartthed]

IMO, all inner ring malls are declining somewhat. No inner ring mall is stronger now than 20 years ago.

I'm pretty sure Fairlane had Saks and Lord & Taylor not too long ago. Can you imagine those upscale stores considering Fairlane nowadays?

I was also surprised to see that Fairlane just decided to completely demolish the area formerly occupied by Saks. I did not walk around to where L&T was located so I don't know if they did the same there too. But the mall is physically smaller than what it was before and it still seems to be struggling.

[Mikeg]

Instead of speculating on the health and future of a mall based on a single, flawed data point, perhaps a better indicator of its health would be the number of vacancies you observed inside the mall?

The national vacancy rate for regional malls back in April stood at 9.1% [source]. Did Fairlane look to be less than 90% leased when you were there? If so, then maybe you could justifiably create a thread like this.

[SWMAP]

I live very close to Fairlane but never shop there. I think I have been there only twice since macy's became the anchor. I think the quality of clothing and the selection in Macy's is terrible. Junky things everywhere. People scary and off-putting. However, same thing at Southland, so i pretty much shop online now.

[iheartthed]

Instead of speculating on the health and future of a mall based on a single, flawed data point, perhaps a better indicator of its health would be the number of vacancies you observed inside the mall?

The national vacancy rate for regional malls back in April stood at 9.1% [source]. Did Fairlane look to be less than 90% leased when you were there? If so, then maybe you could justifiably create a thread like this.

I don't think foot traffic during one of the year's busiest shopping days is a flawed indicator at all...

But it's actually not very easy to spot check empty retail space in a mall since you can't easily tell what space has been taken off the market and what's just empty. In Fairlane they put up fake walls that blend in with the design of the mall so you can't discern empty retail space from non-retail space unless you are familiar with the mall's layout. There are certainly far fewer storefronts in Fairlane now than when I used to shop there some years ago, and as I said above, they have even resorts to permanently demolishing sections of the mall.

[Bham1982]

Mikeg, it isn't just the vacancy rate. There are many indicators gauging the relative health of malls.

One indicator is store quality. When a mall goes from Saks to dollar stores, that's perceived decline, even if the mall has the same vacancy rate.

Another indicator is store type. National chains are typically more desirable, since they generally pay higher rents, they draw in other chains, and they are more reliable renters [[less likely to default).

So, for example, last time I was in Northland [[maybe 10 years ago) it appeared that the mall was mostly occupied, but almost all the stores were independents. That's generally a sign of significant distress.

[Cincinnati_Kid]

Northland is becoming the next Gibraltar Trade Center. More outside vendors, than stores.

[Zacha341]

LOL! Outstanding comparison!! I dpn't even go anymore unless I want that kind of shopping feel. Though they have a shoe repair place that is excellent! Or I want to visit Target.

Northland is becoming the next Gibraltar Trade Center. More outside vendors, than stores.

[Zacha341]

Yeah, I can find nothing in Macy's. I prefer the nicer strip mall places where there is little pretense of upscale shopping, yet you can find some designer things cheap at Burnlington's for example.

I live very close to Fairlane but never shop there. I think I have been there only twice since macy's became the anchor. I think the quality of clothing and the selection in Macy's is terrible. Junky things everywhere. People scary and off-putting. However, same thing at Southland, so i pretty much shop online now.

[DetroitPlanner]

L&T is an interesting case. The L&T wing was never fully occupied since it was built. Several years ago this store was closed when the May Company bought L&T. It later sold the Dayton-Hudson group to Macy's. Prior to the closing of L&T, the Taubman REIT had negotiation a company called Media Play to come to the Mall. It had vacated the entire S side of this wing for this store and moved those businesses to other locations in the mall. In the meantime, Media Play went bankrupt and never opened a store. Since this wing was now nearly empty, Taubman built a wall.

If Fairlane was truely a dead mall, it would have never been able to convince P F Changs and that Italian chain to build stores on the site of the old Saks. These are in the viewshed of two hotels and provide travellers/tourists a reason to visit the mall. While I don't eat at these places, many folks find comfort in eating at places they recognize and see as slightly upscale.

Should the prognosticators be right about K-mart/Sears however, this mall will be in trouble having lost 3 of its five anchors.

[DetroitPlanner]

One indicator is store quality. When a mall goes from Saks to dollar stores, that's perceived decline, even if the mall has the same vacancy rate.

Another indicator is store type. National chains are typically more desirable, since they generally pay higher rents, they draw in other chains, and they are more reliable renters [[less likely to default).

So you would rather have a Family Dollar in your mall than Buddy's?

[jcole]

All malls and retail in general are declining, inner ring, outer ring, whatever. It's called the internet and E-tail that's taking a bite out of retail.

[Bham1982]

So you would rather have a Family Dollar in your mall than Buddy's?

I wouldn't, but the mall ownership might prefer it. National chains tend to pay top dollar.

The dynamics of healthy malls are different than those of healthy downtowns. Generally speaking, healthy downtowns need retail diversity, including many independents. Malls are cookie-cutter cash machines that rely on the familiar.

[mtburb]

When I went to Southland shortly before Christmas Eve [[and the infamous riot) I seldom saw a vacant store. There were many people there, but not a whole bunch. It was during that visit that I also took the photograph that can be seen by viewing my profile here. Yes, it has only one floor [[except for JC Penny which has two and Macy's which has three), predates Fairlane by six years, is the main mall for Downriver and just lost one of it's anchors due to the bankruptcy of Borders, but that's what I saw.

And before you think Southland is confusing, look at the map: http://www.shopsouthlandcenter.com/directory

[Bham1982]

All malls and retail in general are declining, inner ring, outer ring, whatever.

Really?

Somerset and Twelve Oaks are stronger than ever. Both have expanded in recent years, and both have close to 0% vacancy.

Rochester Hills and Clinton Township both have new lifestyle center malls, which seem to be successful.

In contrast, I can't think of a single older mall that has maintained its retail base.

[casscorridor]

eventually there will only be one or two malls left... Somerset and maybe Twelve Oaks.

All the other ones are in decline of various stages. Even the new Partridge Creek seems doomed considering the fate of its twin... Wonderland Mall [[which was eventually covered but still couldn't hold on and was demolished for a Target and Wall Mart).

But as far as Fairlane, I can see one thing it has on its side... it is the closest mall to downtown Detroit. It has the closest megaplex movie theatre, and it is the main mall for west side suburbs. And it even has an H&M, which Somerset can't even claim. I think the biggest problem facing Fairlane, isn't lack of potential customers or its location or even its selection of stores, but rather the design of the mall itself. I can't tell if it is two or three or four floors, with all these walkways shooting out in all directions, it is extremely complicated to navigate and it seems like a 1970s version of the future, sort of reminds me of the RenCen. Very dated looking, but also very hard to change, if not impossible, even with a renovation.

[Zacha341]

^^^ I think Fairlane will hang on due to its location and the dense and growing population of E. Dearborn and other suburbs and its proximity to downtown. But the layout is crazy. Like I said you best plan which door to go in close to your shopping destination or you walking about alot and while that is cool the layout is confusing. BTW what is H&M?

[rjk]

Really?

Somerset and Twelve Oaks are stronger than ever. Both have expanded in recent years, and both have close to 0% vacancy.

Rochester Hills and Clinton Township both have new lifestyle center malls, which seem to be successful.

In contrast, I can't think of a single older mall that has maintained its retail base.

It's just a fact that indoor shopping malls are dying out all over the country. I wouldn't want to buy stock in an indoor shopping mall that I wanted to cash out in another 5-10 years. In the not too distant future people will be talking about indoor shopping malls the way they now talk about the old days when a milkman delivered milk to the house.

In another 7-8 years I wouldn't be surprised if the only indoor mall in this area is Somerset just because it caters to high end shoppers. The other malls will have to adapt of close up.
Universal Mall was a dead/dying mall for the last ten years of its existence, but since it changed its concept to a string of big box store it appears to be very successful. I'm basing this on the crowded parking lot whenever I drive by that area.

[cmubryan]

I hold my breath every time of year around now as many chains list which stores they are planning on closing. My biggest worry has always been the second ever built Hudson's [[now Macy's) at Northland. While not an architectural wonder it still speaks of another era and reminds me of my childhood. The vast parking lot at Northland seems to always be no more than 10% occupied and walking through Macy's is as peaceful as walking through a huge, old library in the middle of the summer. This is definitely the biggest Macy's in Michigan in actual square footage and even with parts of the store closed off, it still feels gigantic. I hope this old lady can hang on a few more years and maybe one day as the city of Detroit's neighborhoods improve, the mall will come back.

[Brian1979]

I was in Fairlane twice in 2011. First time was in May before a Yankees-Tigers game and the second time was a few months later in the summer. Both times the mall did seem pretty scarce of people but I never thought about the mall actually dying or being considered a dead mall. I also didn't notice the Saks store gone.

Isn't Fairlane the one with the two Macy's parts or is that Southland? I'm talking about there is a Macy's store and then on the other end of the mall there is another part of Macy's.