Brookfield Seeks to Add 41K SF of Retail Space at Staten Island Mall
By Amanda Schiavo October 18, 2024 5:16 pm
reprints
The rest of the city may consider Staten Island the forgotten borough, but one investment firm still remembers it’s there, and believes in its potential to be a boon for brick-and-mortar retail.
Brookfield (BN) Property Partners, a subsidiary of Canada-based investment firm Brookfield Asset Management, is investing in the Staten Island Mall, seeking to add 41,000 square feet of retail space to the Richmond Avenue shopping center, according to plans filed with the Department of City Planning.
Brookfield already owns and operates the Staten Island Mall, home to several retail stores including Apple (AAPL), Express and Macy’s, as well as an AMC movie theater, a Dave & Buster’s, and several restaurants and fast-food joints. Brookfield took ownership of the Staten Island Mall when it acquired Chicago-based General Growth Properties for $9.25 billion in 2018, according to the Staten Island Advance.
If the project gets approved by the city, Brookfield will erect seven new one-story retail buildings ranging from 2,000 to 8,000 square feet, taking away 246 parking spaces to make room, according to the proposal filed Thursday. The anticipated opening date would be in 2030.
Brookfield did not immediately respond to a request for comment.
“The proposed action would redistribute entitled, unconstructed commercial floor area across the project site and into seven proposed new retail pads,” the proposal states. “This configuration is required because of changes to market conditions for retail in the post-COVID-19 era.”
COVID-19 had a traumatic impact on brick-and-mortar retail as more shoppers flocked to online stores. The pandemic also reshaped “consumer preferences as to which kinds of stores to patronize, how frequently, and at what locations,” according to a report published in the National Library of Medicine.
However, physical retailers have been fighting to make a comeback and have been having some success in New York City, which is great news for landlords. Indeed, JLL’s third quarter 2024 retail report found that average availability rate in prime retail areas of Manhattan was 14.7 percent for the quarter, the lowest since record keeping began in 2016. This compares to the 21 percent average prime availability rate in 2019 and the 28 percent rate of peak availability in 2021.
Brookfield’s plan for the expansion to the mall in Staten Island’s New Springville neighborhood just started the city’s long Uniform Land Use Review procedure and needs to secure approvals from the City Council and the mayor before it’s approved.
Amanda Schiavo can be reached at aschiavo@commercialobserver.com.
