as soon as it opens in mid-2018, the Alamo Drafthouse Cinema at Woodbury Lakes in suburban Minneapolis will attribute a full-service restaurant and also bar in enhancement to first-run movies and also cinema-themed distinct events.

As cinemas come to be popular anchors because that retail and also mixed-use developments, they are generating more foot traffic and creating synergies with various other tenants.

WITH THE demise of room stores together anchors, owner of shopping centers and also mixed-use breakthroughs are looking come entertainment-related tenants to fill the gap. Movie theaters have actually become crucial component in the entertain mix.

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Nick A. Egelanian, president of Siteworks Retail real Estate solutions in Annapolis, Maryland, advises shopping facility owners on how to make it through the post-department save era. The says, “Theaters assist a shopping center to complete for customers’ discretionary dollars and time.”

Entertainment contents make a center more of a location and carry out “another reason to go to the center and also a reason to stay longer,” claims Margaux Keusch, manager of lifestyle and also urban leasing at Woodbury Lakes in suburban Minneapolis. Owned by Ramco-Gershenson nature Trust, the 300,000-square-foot Woodbury Lakes shopping facility combines big box and lifestyle tenants in a town facility configuration. In repositioning the center, management made decision that it essential to add entertainment and restaurant components to generate more traffic.

Alamo Drafthouse Cinema, a modern theater chain, was favored as a great fit to anchor the center. According to Keusch, once it opens up in mid-2018, the theatre “will attribute a full-service restaurant and bar, and will organize a variety of movie-themed special events that will attract traffic” to the center.

Katie Bucklew, vice chairman of breakthrough at Edens, a national retail genuine estate owner, developer and operator, describes the company’s perspective. “When us look in ~ a advance project or any kind of center that we own, we room asking, what are the drivers? What is getting human being into the shopping center? What Edens really looks for in any type of of that centers is how we deserve to be a hub of the community. Exactly how do we develop a place that looks and also feels great, that has actually the best merchandizing and really serves the community?”

Movie theatre Trends

Customer suffer is the key, and theaters are rising to the challenge. No much longer will stale popcorn and sticky floors suffice; today’s theaters administer the kinds of environments and also amenities that discerning consumer demand: booked seats, stadium or reclining seating, high-tech audiovisual systems, and also expanded food and beverage menus, including alcohol.

Egelanian states today’s cinemas comprise a wide range of concepts, including “elaborate deluxe venues through a broad range of food and also beverage offerings. Basically they room restaurants that show films.”


The Angelika film Center, a boutique movie theater, helped attract both retail and office tenants to the Mosaic district in the Washington, D.C. Suburbs, and also serves as an anchor because that the 32-acre mixed-use development.

The Angelika movie Center, a boutique movie theater, serves as an anchor in the Mosaic District, Edens’ 32-acre mixed-use breakthrough in the Washington, D.C., suburbs, which opened up in 2012. (See “The Mosaic District,” Development, loss 2013.) Bucklew explains that Edens had the opportunity to place a traditional multiplex cinema at Mosaic however preferred Angelika’s art-house concept.

“We really wanted to identify this project, understanding the bordering community, i beg your pardon was really highly educated. Time to be constrained in your lives and also they want a distinctive experience. We want to carry in a theater that spoke in different way to those consumers.” Angelika fit the invoice perfectly; four of the eight theaters are dedicated to independent films and it features gourmet food, coffee, wine and craft beer. Angelika’s visibility as one anchor in ~ Mosaic has “affected the type of merchandising because that the rest of the center and who the attracted,” according to Bucklew.

At Vancouver mall in Vancouver, Washington, Cinetopia took over an 82,200-square-foot an are that had been a department keep in 2011. Follow to JB Schutte, the mall’s general manager, “Today’s to buy centers space all about lifestyle. Entertainment and also dining are a huge part of that. These type of tenants lug people ago to the mall an ext frequently.”

Schutte adds, “The theater at Vancouver shopping mall is a huge draw. Cinetopia is very upscale, through food and alcohol, and also screens as large as 80 feet across. V 23 screens, some room “parlors,” like very fancy life rooms. These have the right to be rented for parties, and likewise show first-run movies.”

Synergies among Tenants

Egelanian notes, “Theaters space a reliable source of traffic in all however the most deluxe malls. Further, theaters and also restaurants are necessary to every other. Even though theaters frequently have your own internal food and beverage offerings, they generate a great deal of interest in other dining venues in a purchase center.”

David Millard, a major at Avison Young who was responsible for office leasing in ~ Mosaic, credits Angelika and the vivid retail scene at Mosaic with helping to tempt tenants. “The task the theatre generates is typically at night and on the weekends, which girlfriend wouldn’t typically think would impact office leasing,” he explains. “But the retail that wants to be around the movie theater absolutely helps the office leasing.” In addition, because office and movie theaters operate at various hours, they room able come share the same parking spaces.

Leasing to Theaters

Compared to most retail leases, movie theatre leases tend to it is in longer, require much more expensive buildouts and generate much less revenue every square foot. Egelanian claims theater leases are generally for 10 to 15 years. Schutte says Cinetopia signed a 15-year lease through two 10-year extensions. The buildout price was split around 50/50 in between the landlord and tenant. Hrs of procedure are not specified in the lease, because the theater is open longer hrs than the mall. Shows begin as at an early stage as 9 a.m. And end roughly midnight top top weeknights and also as late together 2 a.m. ~ above weekends. These prolonged hours have actually not caused any type of problems because that the mall management, according to Schutte.

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Keusch note that several of the potential negatives of theatre tenants are not intended to it is in a trouble at Woodbury Lakes. The movie theatre is situated at the far finish of the center, through plenty the parking, so theatre attendees – who commonly stay for several hrs – will not be parking in prior of retailers. Keusch likewise cautions landlords to pay fist to “exclusive” lease rule that might give a theater the right, because that example, to it is in the only tenant allowed to market candy or popcorn, which could eliminate whole class the potential tenants.

That’s a Wrap

Despite reduced revenue every square foot and also potential additional effort and expense, movie theaters room a significant draw that contributes significantly to the retail environment and experiences that landlords of shopping centers and mixed-use breakthroughs want to provide. Together Bucklew observes, “What us have discovered is human being want experiences. … that is why food and also theaters have end up being really vital to shopping centers. They administer that experiential element.”