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General Construction Updates

anyone know whats up with this? macleod and 53rd. pretty good size footprint.

177343
 
Is it this?

 
New Horizons should honestly pull out all the stops to do deals with Muji and Uniqlo and this mall would fill up immediately after that. The demographics of NW Calgary support it, but they need anchors to draw people in.

Isn't that the problem with the condo mall concept? When you are the owner-operator of a 'normal' mall, any incentives you put into the anchor tenant leases are meant to accrue back to you in higher rents for the small interior spaces. In this situation, the developer's economic incentive is much lower because the uplift from the anchor leases accrues to the people that bought the small interior spaces. I think there's still a pretty strong incentive to save this from continuing failure on a reputation basis alone, but it does highlight why most malls are not set up like this.
 
Based on where Muji and Uniqlo has setup their Canadian locations, I don't think think New Horizons is what they would have in mind. If anything, a Daiso store (Japanese dollar store) could be more compatible with New Horizons but it sounds like there would be a lot of overlap with The Best Shop.
 
Isn't that the problem with the condo mall concept? When you are the owner-operator of a 'normal' mall, any incentives you put into the anchor tenant leases are meant to accrue back to you in higher rents for the small interior spaces. In this situation, the developer's economic incentive is much lower because the uplift from the anchor leases accrues to the people that bought the small interior spaces. I think there's still a pretty strong incentive to save this from continuing failure on a reputation basis alone, but it does highlight why most malls are not set up like this.

That is a fair point and agreed that this is the reason most malls aren't setup like this. I think that if they wanted to stick to small, owner-occupied units, to be successful it would have to be in a much more interesting urban environment or at least a more accessible location closer to the community it hopes to serve. This probably would've done far better along the train line in the NE or NW, or near the T&T in Country Hills/Harvest Hills.

Cross Iron is a destination for Airdrie and country people and only works because it understands it is an outlet mall and is a destination only because of Bass Pro Shop.

People aren't going to go to Balzac for a chinese dollar store/Walmart. TBH it was stupid to build a concept like this in the middle of nowhere without anything tangible to draw people in. Would've been fine if they actually built it in Calgary i think, especially if it was transit accessible.
 

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