Overview
In response to recent news about the renovation of the former Younkers Department Store at Rivertown Crossings Mall, Advantage Commercial Real Estate retail advisor Mike Murray shared his insights on the long-term planning decisions that have contributed to the mall’s current struggles.
The Foundation of Rivertown’s Struggles
It’s no secret that Malls across the Midwest have faced significant challenges over the past decade, and Rivertown Crossings Mall in Grandville, Michigan is no exception.
Vacant spaces, including the long-standing closure of the Sears outlet store, showcase the mall’s struggle to attract and retain tenants. Attendance rates have slowed down, with the exception of select retailers, most notably the Celebration Cinema Rivertown located on the second floor.
However, the mall currently faces challenges more prominent than low traffic counts. Some areas, particularly the parking lots, have experienced visible wear and tear, which has contributed to the mall’s struggles.
Recently, local news in the greater Grand Rapids area has created a buzz around new developments for Rivertown Mall. Grandville City Assessor, Charlie Decator, announced plans to convert the old Younkers space into smaller tenant areas, with a new trampoline park on the upper level.
While these efforts are a step in the right direction, it is important to consider the long-term planning decisions that have led to the mall’s current state. The existing issues go beyond the current economy, or changing consumer shopping habits. In Rivertown’s case, this stage was set for the mall decades ago.
The Impact of Restrictive Regulations
Mike Murray shed light on the background of Rivertown Mall’s struggles:
“Nearly 25 years ago, city leaders implemented strict regulations on signage, access, and development around the mall to prevent it from becoming another densely developed area like 28th Street SE in Grand Rapids, which centers around Woodland Mall. These restrictions have limited the mall’s visibility and accessibility, creating challenges for attracting and retaining tenants.”
Interestingly enough, while areas like 28th Street have thrived with near-record occupancy levels and minimal vacancies, the corridor surrounding Rivertown Crossings Mall has struggled, facing a vacancy rate of 7%.
City leaders and MDOT required Rivertown Crossings Mall to limit visibility with trees, landscaping, and small signs. They restricted access from Rivertown Parkway, trying to control traffic. These regulations, along with zoning restrictions, have also limited fast-food options in the area, and while these measures aimed to maintain a balanced environment, they have impacted the mall’s visibility and the types of businesses that thrive in the area.
“Retailers need restaurants and restaurants need retailers,” Murray explained. “To find success, they need proper signage, visibility, easy access, and high traffic. Due to city restrictions, only two fast food restaurants are in free-standing buildings near Rivertown Mall. This limited presence makes it hard to justify dining in the area when other parts of town offer more options.”
Rivertown’s Governing Documents
Rivertown Crossings Mall is divided into seven properties, each owned by different groups (including Macy’s, JCPenney, and a local owner of the former Younkers). A comprehensive document, similar to condominium association documents, governs the mall and sets rules for these owners, aiming to maintain a cohesive environment.
Murray explained this in greater detail, “This document sets the rules for the mall owners prohibiting them from various uses for their buildings. It requires approvals from all seven owners for major changes to the property, prohibiting construction of buildings in the parking lot. It even restricts building uses such as office, residential, workout facilities, and schools, to name a few.” Article nine of this document addresses the use and operation of the shopping center, stating:
“No part of its parcel may be used for any purpose other than commercial or business compatible with the operation of a shopping center nor will any use or operation that is obnoxious to or inconstant with the development or operation of a first-class regional shopping center.”
Murray continued, “Documents like this are standard for malls nationwide, which is why initial planning is crucial. City Leaders insisted there would be low signage, limited access, and extensive landscaping to block the visibility. They did this thinking it would be best for the community.”
Looking Ahead
In March, city leaders announced a strategy to support the mall’s future by updating their Master Plan. This proposed plan will broaden allowable uses in the district, including office spaces.
“Downtown Grand Rapids already houses a 14% office vacancy rate.” Murray commented, “It’s hard to believe these uses will fully address the mall’s long-standing challenges ”
While the city’s current efforts are a step in the right direction, they should be part of a larger strategy to address the foundational issues that have prolonged the mall’s growth for decades.
To truly capture the potential of Rivertown Crossings Mall, it will require more than just renovating a single department store. A full re-evaluation of the area’s planning regulations and governing documents could be necessary. Starting with Improved signage, access, and quality of infrastructure particularly in parking areas are crucial steps. Addressing these issues will help create a more welcoming environment for retailers and restaurants alike.
Moving Forward
The challenges faced by Rivertown Crossings Mall are part of a broader cycle seen in other local malls. For example, Woodland Mall and CenterPoint Mall, both struggled with declining occupancy and outdated facilities. They found success through strategic investments and management changes. Woodland benefited from modern updates and a focus on contemporary retail trends, while CenterPoint saw significant improvements under new ownership. These examples show that with thoughtful planning and adaptation, malls can overcome difficulties and thrive, offering hope for Rivertown’s future.
If you are interested in visiting malls with lots of signage and great visibility, try these recommendations by Mike Murray: Somerset Collection, Twelve Oaks Mall, and Woodland Mall – which currently has a 49,000 SF building under construction for a Main Event family entertainment center.
If you want a deeper dive into the latest insights and trends for the greater Grand Rapids retail market, read our 2024 Second Quarter Report.
Author: Gabe Stevens
