Real Estate Consulting Project Research Paper Example | Topics and Well Written Essays - 1500 words

Real Estate Consulting Project - Research Paper Example Using industry parlance, the mall has become a "greyfield." As per description, a greyfield mall is a centre that has not made the grade or is in the process of failing. From a layperson's point of view, the measure of failure can include (Tate 1): Additionally, from a retail market standpoint, a shopping centre becomes a greyfield site if the sales per square foot decline every year to below $150 and is vulnerable to becoming a greyfield site if sales per square foot annually are between $150 and $199. This amounts of sales per square foot measure and the dollar amounts revealed are common to both the United States and Canada (PricewaterhouseCoopers 14). To decipher the cause of the waning sales, the bigger questions that need to be asked are -1) what triggered the decline in trade for the mall' 2) what is the future of the mall' 3) can company X do anything about this future' and 4) what should company X do' Further investigation into the history of the mall's consumer environment, revealed that the maturing of the neighborhood is precisely the cause of the issues that the mall was confronted with, that is, while the housing stock stayed much as it was when the community started, the distinctive attributes of the population inhabiting within the area have been tremendously transformed. In one aspect, although the residents of the community are principally the same people, at the base, the current dwellers of the community are fundamentally young parents who bought houses in the community when it, and the mall, were new. The truth is that, while the people have stayed basically the same, they and thus there purchasing patterns, are all thirty five years older. Even though they may be the same individuals, these people are not obtaining and purchasing the same items that they were procuring 35 years ago when they moved into the neighborhood as 25-year-old parents. To boot, an enclosed mall has become less and less fashionable with many consumers and retailers. Consumers are fond of and appreciate very much products that are fresh, novel and interesting. Enclosed malls have been around for so many years now and consumers are now geared up to try new formats. Compounding the situation is the fact that many of the conventional mall anchor department stores that have fallen out of favor with consumers and taking their place are specialty apparel, home furnishing and