Why Hollywood Blockbusters Have Landlords Jumping for Joy
This year is going to have some big box office hits (Star Wars: The Force Awakens, anyone?) that'll bring in more foot traffic (aka profit) for shopping centers that feature theaters. In the recent economic downturn, same-store sales were generally declining, except for theaters.
"Entertainment and mixed-use developments are the ‘darling’ of both the open-air and enclosed sector developments and as such, theaters act as distinct anchors," president of the eastern division of Retail Properties of America Timothy Steffan says.
The movie theater industry is 5% ahead of last year as more people are going to the movies today than ever before.
For shopping malls to profit most from the entertainment demand, developers should dish out the investment to add to the consumer experience with state-of-the-art facilities (think reclining seats) and more food and beverage options (maybe a cocktail bar). Surrounding retailers will thank you. [NREI]
