Despite the alleged struggles of physical retail, Canadian developer Triple Five Worldwide is planning to open American Dream Miami, the biggest mall in the U.S., according to The Wall Street Journal. The proposed 6.2 million-square-foot retail and entertainment space would cost an estimated $4 billion, making it the most expensive mall ever built.
American Dream Miami is betting on the draw of experiential retail: the complex will feature 2,000 hotel rooms, an indoor ski slope, an ice-climbing wall and a water park in addition to stores. The original plans filled the majority of the space with retailers, but the new version will put the emphasis on the entertainment side.
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While the amenities may seem excessive, analysts believe malls that prioritize high-end experiences better cater to future generations of shoppers. High-performing “Class A” malls:
- Constitute only 20% of the market, yet represent 72% of total mall sales. — Green Street Advisors;
- Have experienced double-digit sales growth since 2012 — Coresight Research; and
- Are 90% occupied. — A.T. Kearney.
Triple Five has secured zoning from the Miami-Dade County Commission, and is in the process of securing environmental and water permits. The project still faces hurdles, though, including residents’ concerns about the traffic and environmental impact.
Additionally, mall owners including Simon Property Group, Taubman Centers Inc. and GGP Inc. have formed the South Florida Taxpayers Alliance to prevent the project from being subsidized by taxpayer money. In response, the Miami-Dade County Commission passed a resolution guaranteeing that the county won’t pay for any part of the construction project. Triple Five added that it does not plan to accept subsidies for the project.
Similarities have been drawn between American Dream Miami and American Dream Meadowlands in New Jersey, which began construction in 2003 named Xanadu. The project stopped abruptly when the developer ran out of funding. The site was purchased by Triple Five in 2013; construction has resumed and the mall is scheduled to open in 2019.
