Property Repositioning: Adapting to Retail Evolution

In today's rapidly changing retail landscape—defined by declining department store anchors, growing demand for mixed-use experiences, the rise of e-commerce, changing consumer expectations, and shrinking store footprints—the most successful shopping center owners are those who view market evolution not as a challenge, but as an opportunity for strategic repositioning. With shifting consumer expectations, technological advances, and new competitive pressures, property repositioning has become essential for maintaining relevance and driving long-term value.

Understanding the Experience Gap

The concept of the "experience gap" has emerged as a critical framework for property repositioning. This approach focuses on identifying and filling marketplace voids—experiences, services, and retail concepts that cannot be replicated online or by competitors in your market.

Identifying Your Property's Experience Gaps:

1. Consumer Behavior Analysis
   
   • Study how customers currently use your property
   • Identify unmet needs within your trade area
   • Analyze demographic shifts and emerging preferences

Read more: McKinsey - The State of Consumer Behavior 2023

2. Competitive Positioning Assessment
   
   • Map the competitive landscape within your trade area
   • Identify experience categories underrepresented in the market
   • Evaluate your property's unique strengths and opportunities
3. Tenant Performance Patterns
   
   • Analyze which tenants are thriving and why
   • Identify experiential elements driving foot traffic
   • Determine which services generate repeat visits

Key Repositioning Strategies for Today's Market

1. Experience-Driven Tenant Mix Optimization

The most successful properties are moving beyond traditional tenant categorization to focus on experience clustering—grouping complementary tenants that collectively create a compelling consumer journey.

Implementation Approaches:

• Create themed zones based on lifestyle categories
• Cluster tenants based on customer journey mapping
• Position experience-driven concepts as traffic drivers

Case Example:
Ponce City Market – Atlanta is a standout example of experience-driven clustering, combining dining, shopping, creative offices, and residential units. The property's layout supports distinct experiences like a rooftop amusement park and food hall, driving dwell time and return visits. Placer.ai discusses this strategy in their analysis of nontraditional anchors and experience clustering.

2. Flexible Space Integration

Forward-thinking property owners are incorporating flexible, multi-purpose spaces that can adapt to changing market needs and create opportunities for innovation.

Implementation Approaches:

• Convert traditional retail spaces into flexible formats
• Create shared environments for complementary tenants
• Develop outdoor spaces designed for multiple uses

Case Example:
Boxyard RTP – North Carolina demonstrates how a property can thrive by using shipping containers and open-air design to house local food, beverage, and retail vendors. Its flexible layout enables pop-up concepts, seasonal programming, and collaborative spaces, aligning with trends toward localism and adaptability. [explore how developers are rethinking space use in ICSC's article on flexible retail formats and mixed-use trends.

3. Community Integration Strategy

Properties that position themselves as community hubs rather than mere shopping destinations have demonstrated greater resilience and stronger tenant performance.

Implementation Approaches:

• Incorporate community-serving elements
• Create gathering spaces that drive regular visitation
• Partner with local organizations for programming

Case Example:
Crocker Park – Westlake, OH has successfully blended retail, residential, and civic uses into a cohesive, walkable destination. With a mix of shops, restaurants, parks, apartments, and event programming, it serves as a daily-use community hub. ULI also explores this repositioning trend.

Measuring Repositioning Success

Effective property repositioning requires clear success metrics aligned with your strategic objectives:

Performance Indicators to Track:

• Foot Traffic Patterns: Changes in volume, frequency, and dwell time
• Tenant Sales Performance: Year-over-year growth across categories
• Lease Terms: Improvements in rent rates and tenant quality
• Customer Sentiment: Measured through surveys and online reputation
• Cross-Shopping Behavior: Increases in multi-tenant visits

Explore Analytics Resources: Placer.ai Blog

Implementation Framework: The Four Phases of Repositioning

Phase 1: Strategic Assessment

• Analyze market position and competitive landscape
• Identify experience gaps and opportunity areas
• Develop property positioning strategy

Phase 2: Tenant Alignment

• Evaluate current tenant mix against strategic vision
• Identify tenants for renewal, replacement, or relocation
• Develop targeted leasing strategy

Phase 3: Physical Adaptation

• Identify necessary property modifications
• Prioritize improvements based on impact and cost
• Implement changes with minimal disruption

Phase 4: Market Communication

• Develop positioning narrative
• Create compelling tenant recruitment tools
• Implement consumer-facing communication strategy

Building Momentum with Early Wins

Successful repositioning often begins with visible, impact-focused changes that signal the property's evolution:

• Activate Underutilized Spaces: Transform dead zones into vibrant use areas
• Experience Enhancement: Add amenities that immediately improve the customer journey
• Community Integration: Introduce programming that builds new visitation patterns
• Visual Transformation: Strategic cosmetic updates that signal change

Read: Retail Dive – Small Space Changes, Big Results

Conclusion

Property repositioning is not a one-time event but an ongoing strategic process. By identifying experience gaps, implementing targeted strategies, and measuring outcomes, property owners can transform market challenges into opportunities for differentiation and growth.

The most successful repositioning strategies share a common approach: they begin with deep market understanding, focus on creating experiences that cannot be replicated online, and evolve continuously as consumer preferences change.

Ready to explore repositioning opportunities for your property? Contact our team for a comprehensive market assessment and strategic repositioning roadmap.

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