Saw this video of a guy who went out to the New Horizons Mall in Balzac. If you go to Cross Iron Mills or drive the QEII often you’ve undoubtedly seen this thing under construction. Well, it’s open for business... and it’s empty. No stores, no customers, no food joints... nothing. Just a bunch of ‘For Lease’ signs.
The video is a little long on the tooth, but you get the idea in the first minute or two.
So, what’s gone on out there? Is the whole thing a doomed failed experiment? I know they had some innovative new way of selling off the spaces, which would then be leased out, but it looks like nobody got a single one leased. I can’t imagine a space like that size has cheap operation costs. It looks like a disaster.
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Comes down to greed and speculation. The concept for the mall has worked elsewhere, and I'm not entirely sold that a big reason for the failure is the location (they were saying the same about CrossIron). The issue here is how they were sold. Instead of invoking a requirement that all sold spaces be occuplied by a certain date or turned back over... they had nothing. Pretty much all the spaces sold to speculators, looking at them as investments and saw $$$ thinking they could then lease them to these small store owners. Except then the lease rates are stupid high, and just are not feasible, even approaching rates in existing malls. In low margin stores that were being marketed, it's just not an option. This should have been restricted so that costs were kept low and store owners actually owned the space.
Developer must be laughing. He's been paid by all the investors and his end of the deal is done now that the building is complete. Lots of people got conned.
Feel bad for the people legitimately wanting to run a business in there who didn’t foresee this kind of delay. I’m guessing it’ll just be a matter of time before it’s a race to the bottom and people start drastically cutting lease rates and/or dumping them with negative cash flow (ie condo fees/utilities). Might be a way to pick up a space on the cheap. Until then, supply >>>>>>>>>>>> demand at current asking prices.
PS the guy in the video is super annoying... for some reason he keeps looking around like he’s in there illegally and not wanting to get caught. Had to turn it off.
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That article from the herald is amusing in that it suggests that owners of the units maybe looking to work with mall owners to figure out what kind of store they want. Seems like an odd way to do that as would one not normally figure that out first. And then get space?
Wonder how much that would cost to convert into a series of ice rinks?
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The video is annoying. I'm not sure why it needs to be so long. The mall is empty, end of story. I saw it on the news recently, and there are a few stores open. I'm not sure how well their businesses are doing, if no one else is there. I guess it depends on if they depend on walk-in traffic or not.
OTOH, that guy sweeping the floors must have a pretty easy job!
The video is annoying. I'm not sure why it needs to be so long. The mall is empty, end of story. I saw it on the news recently, and there are a few stores open. I'm not sure how well their businesses are doing, if no one else is there. I guess it depends on if they depend on walk-in traffic or not.
Annoying video for being long? You could summarize the gist of any video in a headline and avoid the videos all together. What kind of argument is that?
And you're also asking if the businesses are doing well and if they depend on walk in shoppers? Are you serious? Firstly, its a mall. Every shop except the Apple Store depends on walk in traffic. Secondly, of course the businesses are doing horrifically. Even with free leases some owners are giving out, no one there is making any money.
Annoying video for being long? You could summarize the gist of any video in a headline and avoid the videos all together. What kind of argument is that?
And you're also asking if the businesses are doing well and if they depend on walk in shoppers? Are you serious? Firstly, its a mall. Every shop except the Apple Store depends on walk in traffic. Secondly, of course the businesses are doing horrifically. Even with free leases some owners are giving out, no one there is making any money.
Terrible concept, terrible execution.
Well, after he walks around and shows a few empty halls, what else is there to see?
Sure, walk in traffic is usually important in a mall, but I don't know what those businesses are. What about a tattoo shop where the artist was someone everyone wants to go to?
It seems to me that building a mall in the middle of nowhere without some anchor tenants was very short-sighted.
Cross-Iron Mills worked because they had a movie theater that could service that area and primarily because they're outlet stores and ultimately because they had Bass Pro Shops as anchor tenants.
You'll go out of your way to go to Bass Pro and then maybe wander the mall and buy some stuff or get something to eat.
Ditto if you're going to go see a movie.
The real issue with this is that the 'business condo' model is flawed in that they're incredibly expensive, they're typically undeveloped for the most part and they're purchased by speculators who want to generate a profit on their investment meaning that the rates have to be so high that your standard business isnt going to succeed.
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From the get go this location next to Crossiron never made much sense to me for an asian bazaar/flea market style set up.
Crossiron was developed to be the destination in that area, once you fought the traffic on the highway, dealt with the maze of a parking lot, wander the mall for a while, then lugged your family/shopping back into the car... you're well spent emotionally/physically/financially. Fighting more traffic to scoot across one of the exit roads for a bubble tea just isn't gonna happen.
Even looking at similar projects in Calgary or other cities they tend to either be the only complex of this type in the area(Farmers Market, Crossroads Market), or they're in densely populated areas(Pacific Place Mall)... New Horizon Mall has neither.
This project should have either been placed in a densely populated area (something like Currie Barracks) or a suburban car-centric shopping districts like West Hills. Locations where people are either going come out specifically for the asian market, or an area where they aren't competing directly with a one stop mega complex.
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It seems to me that building a mall in the middle of nowhere without some anchor tenants was very short-sighted.
Well, there's half a million people within very easy driving distance, plus the draw of CrossIron, which you've already noted as a success. Though, of course, a mall catering to Asian shopping tastes being nowhere near Asian population clusters was pretty stupid.
The failure of this mall really comes down to the short sighted sales strategy of the builders. They've apparently sold every stall, but didn't ensure that they were selling to people who would actually run shops. Instead, the entire thing was sold to vultures who thought to profit by inserting themselves as an unnecessary layer of management/bureaucracy. So if there's one silver lining to this, it's that they are all getting absolutely wrecked.
The question is, can the mall recover when those vultures find themselves forced to sell at bargain prices, hopefully to people who will open shops?
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