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By BETH MATTSON
<br /> Maple Circ>vc,where for
<br /> the last few years devel-
<br /> oper have been evcing a
<br /> spot near 77th Avenue
<br /> and Highwav 169 as a
<br /> Potential site for a Are Malls History? re-
<br /> gional
<br /> Casualties at existing
<br /> malls;are rising.as evi-
<br /> POWER CENTERS ARE THE NEW DARLINGS OF RETAILERS AND DEVELOPERS. deuced by darkened
<br /> storefronts at Kno11-
<br /> wobd,Norlhtown,and
<br /> other smaller malls. But
<br /> malls are not down for
<br /> IF.ver since the country's first enclosed mall,South- Just as notable,Tamarack Village has enticed tradi- the count vet.Their sur-
<br /> tional mall tenants.The inclusion of Limited Express, viva) lies in rcposition-
<br /> dale Shopping Center, put Edina on the map in 1956, for example,marks the first time this apparel chain has ing. southd:tle, Rose-
<br /> ventured out of the safe haven of shopping malls.The dale,and even Ridge-
<br /> the Twin Cities have led the nation in cutting-edge re- power center also is home to such small retailers as dale have undergone
<br /> Lane Bryant,Land's End,and Mail Boxes Etc. m u l t i m i l l i o n-d o I I a r
<br /> tail developments. Minnesota again broke new ground Tamarack Village differs,however,from the tradi- makeovers to better
<br /> tional power-center design—usually a cluster of generic compete with the Mall
<br /> in 1992, with the opening of the Mall of America in concrete boxes.The developer wanted to create a pleas- of America•and so far
<br /> ant shopping experience that showcases interesting ar- the three Dales have
<br /> Bloomington. It was only a matter of time before Twin chitecture and landscaping that includes open-air public weathered Ilse changing
<br /> plazas,flowers,fountains,and ponds. retail climate quite well.
<br /> Cities developers discovered the"power center." Considering its aesthetic appeal,giant proportions, Keeping up-lo-date
<br /> and unique tenant mix,Tamarack Village seems to be a with renovations and
<br /> Tamarack Village,a 750,000-square-foot retail devel- roof and a couple of escalators shy of Tamarackdale.In maintaining solid anchor
<br /> opment in Woodbury,is one of a handful of giant power fact,the city of Woodbury originally tagged the site for tenants is crucial to a
<br /> centers that have popped up across the country.Bloom- a shopping mall in the mid 1980s. But given the high mall's longevity.After
<br /> ington-based Robert Muir Company had two-thirds of costs and uncertain future of the mall,Robert Muir several unsuccessful at-
<br /> the center up and running in November.The remaining didn't bother giving the project a second thought before tempts. Eden Prairie
<br /> portion is scheduled for completion by spring 1997. opting to go with a power-center format. Center has finally landed
<br /> What makes Tamarack Village a prototype of the Real-estate taxes alone at shopping malls are about a Dayton's store and is
<br /> 21st-century shopping mall is its reliance on so-called $15 to$20 per square foot,while Common Area Main- planning$60 million in
<br /> category-killer retailers—enormous stores tenance(CAM)costs are about$8 per square foot. renovations. Shopping
<br /> (such as Best Buy,SportMart,and Power centers typically see taxes in the$3 to$4 per malls also are taking cues
<br /> Office Depot) that provide square foot range,and CAM costs are about$1.50 to$2. from the Mall of Ameri-
<br /> time-pressed shoppers with There are substantial differences in net rental rates as ca,beefing up their en-
<br /> quick access to massive in- well.Regional mall rents average about$16 per square tertainntent offerings.
<br /> ventorics with rock-bot- foot for smaller tenants and close to$60 for larger ten- Roller coasters and
<br /> tom pricing.And if cate- ants. Rents at power centers average about$10 for aquariums may he out of
<br /> or iv
<br /> gory killers give heart- smaller tenants and about$16 for larger tenants.Most reach for the Iradtuunal
<br /> burn to their competition small retailers simply can't afford mall rents. m all.
<br /> but Eden prairie
<br /> in small,local shopping Even the national chains are discovering the consider- Center has gone so far as
<br /> malls Tamar Village tlla a able foot traffic -
<br /> g generated by w .,
<br /> g power-center er center anchors. to include, a 14-screen
<br /> is a guaranteed ulcer. Some power-center retailers find that their sales nearly movie theater and an in-
<br /> Tamarack Village is equal sales at their mall locations.Casual Corner,for door ice-skating rink in
<br /> about twice the size of example,has found that its Woodbury Village loca- its renovation plans.
<br /> ` the typical power center,mak- lion—another Robert Muir development—is one of the Shopping and figure
<br /> ing it comparable to smaller regional chain's top-performing stores. eights all wider the same
<br /> malls,such as the Eden Prairie Center and This changing retail landscape is challenging the via- roof. What will Ihev
<br /> Maplewood Mall.Whereas most power centers bility of the shopping mall.Fewer than 10 regional malls think of next'' ■
<br /> are characterized by three or four superstar anchors,the are under construction across the country,and the Twin
<br /> Woodbury development features a staggering 11 anchor Cities'ability to support another mall is questionable. 6t•rh ,llurrson is a Ire(.-
<br /> tenants,including Cub Foods,Mervyn's,Petsmart,and Obviously,Woodbury has changed its tune when it inner nvifei in the Toriir
<br /> Home Depot. comes to building a new mall.The next likely target is fines.
<br /> )ECEMBER 1996 TWIN CITIES BUSINESS MONTHLY ILLUSTRATION BY SCOTT BUCHSCHACHER
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