Shopping Centers: Post Covid-19 Opportunities

Designing or adapting properties to be of mixed use, offering more entertainment options and mixing in an adequate way the type of tenants to whom the premises will be rented, are strategies that could give a new boost to shopping centers.

Thursday, January 7, 2021

The pandemic drove consumers away from shopping centers, as government home quarantines in the region, the rise of e-commerce, and bans on people from visiting these facilities significantly affected mall operations.

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With the reopening of the economy, consumers have returned to shopping malls, however, the number of visitors is still not as desired and according to the managers of these establishments, it must be innovated so that in a post-pandemic future, they can take advantage of the opportunities.

In the case of Costa Rica, there was already an alert about the increase in the rate of unemployment of the premises since before the beginning of the pandemic. In mid 2019, CentralAmericaData reported that in the last year the unemployment rate of commercial premises in the Costa Rican market had increased, a behavior that was partly explained by the economic situation of the country and by changes in consumer preferences.

In order to face the new challenges that the post-pandemic era will bring, in which consumer preferences will vary and the new commercial reality will be consolidated, specialists in the subject divulge some strategies to boost the income of shopping centers.

Danny Quiros, director of Market Research of the Newmark firm, told Nacion.com that "... the mixed use of the projects seems to be successful: more closed consumption centers that combine offices, stores, lodging and housing, but in formats smaller than a mall."

According to the specialist, for years the concept of the mall has been migrating from a place exclusively for stores, to a space with more entertainment and socialization options.

Quiros added that "... there was a bad planning of the mix of tenants. It's an excellent opportunity to rethink and make a proper tenant mix', according to the type of mall."

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