Florida – The Galleria Mall in Fort Lauderdale, known for its urban dining and shopping, is looking for a new owner. The mall has been trying to modernize for the 21st century but can’t keep up with the fast-changing industry and customers’ needs.
Commercial real estate firm CBRE to help with the sales
CBRE, a big name in commercial real estate, is in charge of the process and is required to find interested parties in purchasing the mall. According to the firm, the mall is an amazing chance for a big, fancy redevelopment project. They say it’s a rare offer for downtown Fort Lauderdale.
But is it really?
The 800,000-square-foot Galleria Mall is known as a great shopping and eating place in South Florida. But CBRE will have a hard time finding interested parties in purchasing the mall, at least for a high price. The reason? Decreasing popularity in recent years. The current owner of the mall is Keystone-Florida Holding Corp., while Robert Given, Casey Rosen, Brad Capas, and George Good from CBRE are in charge of selling it. O’Connor Capital Partners is giving advice to Keystone.
Galleria Mall has not been so popular in recent years
Galleria Mall was once a very popular place, but its popularity has been constantly decreasing in recent years. While brands and restaurants like H&M, Lenscrafters, and The Capitol Grille are still operating, the management has failed to bring fresh and popular brands in the last decade. Brands like Saks and Lord & Taylor used to be there, but not anymore.
What has gained a little bit of popularity in recent years, especially during weekends and holidays, is the Apple Store, which still manages to attract many customers. The Apple Store seems to be the most popular spot in the Galleria Mall.
Two-thirds of the mall is currently occupied
Available data from CBRE shows that the Galleria Mall is 67% full right now. That’s way below what any owner would expect from the management.
The upcoming sale is about the mall space. Dillard’s owns its part, and Macy’s has a long-term lease for its space.
“The Galleria Fort Lauderdale property site is about one-third the size of the entire Fort Lauderdale Central Business District, making it an incredible placemaking opportunity unlike any other available property in South Florida,” Given says. “An offering of this scale has not been available in greater downtown Fort Lauderdale in decades.”
The Galleria Fort Lauderdale is easily accessible to the city’s beaches, hospitals, airports, job areas, and federal highways at 2414 East Sunrise Boulevard, which is situated between Federal Highway and Florida State Road A1A. It is also about two miles from the Fort Lauderdale, Florida, Brightline passenger rail station, which offers access to all of South Florida and even Orlando.
Rosen from CBRE finds the mall’s location to be its biggest pro. The fact that it’s located in a busy-traffic area but close to a high residential and commercial demand area with water views and proximity to beaches and downtown is a promise for future success for whoever is going to buy the property.