Mega Miami retail project proves malls aren't dead yet

It used to be that when you needed a new outfit, or a family birthday present, you headed to the mall to browse the stores, try on clothes, and compare prices. Now, with the breadth of products available via smartphone—courtesy of the internet—plus, free shipping and easy return policies, shoppers are increasingly opting instead to shop from the comfort of their couches.

And that’s taken a harsh toll on many brick-and-mortar shopping centers in the last 10 years.

The United States used to have about 1,500 indoor shopping malls. Now the number is roughly 1,000, and about 10 percent of those are projected to go out of business during the next decade.

But while other malls are shutting down, developer Triple Five Group is building a new one. And it’s not just any mall. It will be the biggest in America.

Canada-based Triple Five also owns the famous Mall of America in Bloomington, Minn., currently the largest mall in the United States, at more than 4 million square feet. The company’s latest shopping extravaganza is planned for Miami, Fla., and will include a water park, performing arts theater, hotels, and even an indoor snow skiing slope. The plans also include a sea lion show, submarine rides, and a roller coaster. It’s all designed to be a one-stop destination for fun, food, shopping, and accommodations—amusement park meets retail therapy.

The project is expected to cost upwards of $4 billion, and the developers say it could create about 25,000 jobs.

Gargantuan malls are all about building an experience. Triple Five is creating a similar destination in New Jersey, where a huge complex called American Dream–Meadowlands will host many of the same features and activities as its Miami counterpart.

The 3-million-square-foot New Jersey project has been more than a decade in the making. Legal delays and funding problems set back the timeline, but the project finally is moving forward. New Jersey Gov. Chris Christie touted the mall’s projected economic boost during a 2014 signing ceremony cementing a deal between local trade unions and the developer.

No one can know for sure what kind of economic growth the New Jersey and Miami projects may bring about. But the history of Triple Five’s other mall projects, including its first mall in Edmonton, Alberta, Canada in the 1980s, offer some clues.

Edmonton Mayor Steven Mandel said the West Edmonton Mall spurred lots of economic activity, and has even helped boost business at the other, smaller malls in the area: “So the spin off effect is tremendous. We guess that West Edmonton brings in tens and tens of millions of dollars of business to the city, and also tens of millions of dollars of taxes, which from my point of view is what pays our police officers and firemen and gets our roads fixed.”

And then there’s Triple Five’s most notable American project, the Mall of America, which opened in 1992 and reinvented the concept of destination shopping and entertainment. The shopping center has 520 stores, 4.2 million square feet, and 11,000 employees. It generates more than $2 billion in economic activity annually.

Now, more than 20 years later, the Mall of America is aggressively pushing back against inroads from online shopping by launching an extensive expansion project that includes even more retail space and, of course, additional amenities. The expansion plans include a Marriott Hotel, 50 new restaurants and retailers on three floors, an office complex, and a tourism welcome center. Some of the new amenities will open this summer.

As for Triple Five’s Miami project, a building schedule for the mega mall hasn’t been revealed, and only time will tell if the extravagant complex will draw people out of their homes. Or if it will, perhaps, make shopping online that much more attractive.

Listen to Christina Darnell's full report on The World and Everything in It.