Oak Park Mall isn’t like other malls —​ it’s not dying. Here’s what its future holds

When American fashion designer Rachel Roy was looking for a place to open her first pop-up this fall, she picked Overland Park’s Oak Park Mall for its “vibrancy.”

Alchemy Bath Co. in Lawrence also opened its first storefront there this year, hoping the “traffic and exposure” would raise the profile of the home-based business. And Cupcakin Bakery did so well as a holiday pop-up, it opened a permanent location and added an event space for children’s parties.

Heading into the holidays, mall vacancies nationally hit 9.1 percent in the third quarter from 8.6 percent in the second quarter, the largest one-quarter jump since 2009, according to data by real estate research firm Reis.

But Oak Park, one of the metro’s last traditional malls, has only a handful of empty spots. Though the future loss of the 200,000-square-foot, three-story Nordstrom in 2021 is “clearly not good news,” according to real estate experts, it does open up opportunities for new destination draws, even on-trend entertainment venues.

CBL, the Chattanooga, Tenn.-based owners of Oak Park Mall, said it has great demographics, with an affluent population and good quality of life and the mall is “well positioned” within this market.

CBL owns 63 malls in 27 states, mostly in the southeast but also in Illinois and elsewhere in the Midwest. Stacey Keating, corporate communications director with CBL, said Oak Park Mall ranks among the top 20 malls in its inventory, with sales of more than $375 per square foot in the 1.5-million square foot property.

The mall generated an estimated $3.47 million in sales tax revenue for Overland Park in 2017, down from $3.6 million in 2016. But the mall is still a significant revenue generator in Overland Park, accounting for about 6.4 percent of the total city sales tax receipts in 2017.

“Malls have morphed over time to adjust to consumers’ fickle demands,” said Curt Skoog, an Overland Park council member who represents the ward that includes the mall. “From the discussions I’ve had with the mall managers, they’re aware we’re in another time of transition. They are thinking about what the future of a mall is.”

Mall evolution

Since opening in 1975, Oak Park Mall has weathered an ever-changing retail landscape. As a regional mall, it attracted some of the national’s top retailers and held on to them as exclusive tenants, including American Girl, Build-a-Bear Workshop and Disney Store, as well as Nordstrom.

The Overland Park mall, along with Independence Center on the other side of the metro, are all that remain of Kansas City’s traditional malls. They’ve outlasted those that came before as well as after — Bannister Mall, the Great Mall of the Great Plains, Indian Springs, Metcalf South Shopping Center and Mission Center.

They also stood their ground when trendy new lifestyle centers such as Park Place, Town Center Plaza and Zona Rosa arrived. Lifestyle centers were designed to let time-stretched consumers park near their favorite stores, and many experts said the centers would replace traditional malls.

Other area shopping centers made major changes to survive.

Antioch Center and Blue Ridge Mall were plowed down and replaced by freestanding or multi-tenant buildings. Ward Parkway Center became part traditional mall, part lifestyle center and now also has a restaurant district on the south side. Even Independence Center converted a small portion of space to the “lifestyle” concept, allowing customers to park in front of their favorite stores such as Kirkland’s.

“Malls are in a constant state of evolution and that includes tenant mix. They are diversifying their tenant base to appeal to millennials and Gen Z, who prefer experience to the traditional, product-heavy mall,” Shannon Troy, spokeswoman for the International Council of Shopping Centers, said in a statement. “There is a larger emphasis on restaurants, fitness, recreation and beyond so that consumers can experience something that cannot be replicated at home.”

Among the top trends showcased in Las Vegas at the council’s RECon May convention were food halls, pop-up shops, showroom-only operations, fast-casual restaurants and experiential retail. The convention is the retail real estate’s largest global gathering, attracting an estimated 37,000 industry professionals.

“Consumers want to be able to take their family and spend the day doing a variety of activities but they also want to be able to just stop in and pick up purchases made online,” Troy said.

Oak Park Mall was already on the forefront of the pop-up trend with its Boutique in a Box, a space devoted to locally owned pop-ups that opened during the holidays in 2017 and continued through this year. Some of the pop-ups, such as Cupcakin Bakery, have transitioned to permanent locations.

Oak Park’s newest tenants

Here’s a look at Oak Park’s new locally owned offerings — most exclusive to the mall:

▪ Alchemy Bath Co. the Lawrence-based company produces and packages all-natural skin care products. Shoppers can watch bath bombs and soaps being made on-site.

▪ BubbleConeZ specializes in ice cream cones that taste like waffles but look like bubble wrap, as well as cotton candy made-to-order, flavored sodas including mango, and fresh juice.

▪ The Culture House has a retail shop and theater seating about 200 people, and programs in dance and theater arts.

“It gives us a real good opportunity to share the arts with a whole lot of people who might not experience it otherwise,” said Amy Sander, general manager and production producer.

▪ Cupcakin Bakery offers cupcakes, chocolate-covered strawberries and candy, as well as parties for little girls including Princess Tea Parties.

▪ Giselle’s Bridal, owned by a mother and her two daughters, specializes in quinceanera, flower girl, prom and bridal gowns, and formal wear. They also have a location in Independence.

▪ Kindred boutique collective of local vendors, including vintage collectors.

▪Quel J. The Chic Boutique, specializes in apparel for women 35 and older.

▪ Tabu Knits & Boutique, Skate in a Box, Black Onyx Apparel, Free State Oils and LoKCal pop-ups are currently operating in Boutique in a Box.

“(The Boutique in the Box) is a very unique concept and people are drawn to it, the fact that it is a local business,” said Maryann Nzioki of Tabu. “Leases are very complicated and here you can do a one-month, a one-year. To me it’s a great opportunity.”

Retail chains also are moving in and stepping up.

Macy’s put one of its Backstage store-within-a-store concepts in Oak Park Mall, as well as Independence Center. The concept offers value prices — 20 percent to 80 percent off — on recognizable brands and a constantly changing inventory.

Altar’d State is taking the former Foundry Big & Tall Supply Co. space, dark since early 2015. NobiliTea Tea opened in the former Teavana space.

Oak Park Mall officials also said they have an entertainment tenant for a large space in the Nordstrom wing that they will announce soon, as well as another tenant for a large empty space in the center mall.

Nordstrom’s space

Speaking of Nordstrom, the anchor tenant will open a new store on the Country Club Plaza in 2021.

“We are actively working on plans for the Nordstrom space right now, but it will take time for those plans to be finalized,” Keating of CBL said. “Oak Park Mall is an incredibly strong property. This gives us an opportunity that we wouldn’t have otherwise.”

Keating said the company has had success revamping other malls and properties with new types of entertainment venues.

In recent months, it has started construction on a former Macy’s building at the Jefferson Mall in Louisville, Ky., for a Round1 Bowling & Amusement destination.

It’s also redeveloping a former Sears property in Milwaukee with a dine-in movie theater and WhirlyBall, a new concept that combines some aspects of lacrosse, basketball and bumper cars along with an extensive food and beverage menu.

“Those are definitely the types of uses we’re looking toward,” Keating said. “The general direction we’re moving is we are looking at uses outside of retail,” although she declined to provide specifics.

According to Creditntell, there have been approximately 632 announced closures for department stores this year.

Mark Newman, executive vice president of retail for JLL, said malls need to “adapt or die.” He added that malls are finding ways to be “a cool place to be.”

State of other KC malls

Among the shopping centers in the region, Oak Park Mall is a shining star.

Occupancy at the Northland’s Zona Rosa is about 75 percent.

A group led by TPG Sixth Street Partners took over ownership of the property in September and installed Trademark Property Co. to manage the property. The group has already begun reinvesting in the property with an initial commitment of over $1 million to repair and improve the landscaping and signage, as well as the walking and parking areas.

Independence Center has about a dozen empty shops. A mall official disputed that number, saying it has signed four new tenants — Barrel & Vine, the Classy Way Boutique Kindred and Paciugo Gelato & Cafe, and seasonal stores.

When anchor tenants close, foot traffic can drop at the mall’s other retailers. So often, tenants have co-tenancy agreements, allowing them to reduce their rent or even get out of a lease when a larger tenant shuts down.

When Starbucks said it would shutter all of its Teavana stores, shopping center owner Simon Property Group — which owned Independence Center at the time — filed suit, in part because of the effect it could have on other tenants, according to reports.

Metro North Shopping Center has been demolished to make way for Metro North Crossing. Officials said there were no updates.

Scarborough Research said Oak Park Mall drew the most visitors from February 2017 to February 2018, the latest figures available, followed by The Legends at Village West, the Country Club Plaza, Zona Rosa and Independence Center.

Amy Rapawy, spokeswoman for the New York-based RACHEL Rachel Roy, said they were impressed with the mall’s quality of tenants, from Lush handmade cosmetics and body products to Lolli & Pops sweets shop — both first-to-market shops.

“(Oak Park Mall) had all the markers of success,” Rapawy said.

This story was originally published October 24, 2018 at 5:30 AM.