Losing Macy’s is a blow to two second-tier Twin Cities shopping malls that have been struggling to redefine their relevance, but it may not be the gut punch it would have been in the department store’s prime. Maplewood Mall and Burnsville Center are in the process of reimagining the anchor space the retailer will soon vacate at both shopping centers—they were among the 66 nationwide store closings Macy’s announced in January. Closing sales are already underway.

Based on conversations this week with owners of both properties, Maplewood Mall is closer to signing a tenant for the Macy’s space. But beyond filling the space is the larger question malls across the country are considering: what drives traffic to a shopping center today, especially what the industry classifies as “B” malls like Maplewood and Burnsville that tend to rely on more localized visits and a modest collection of brands.

“The ability to do something grander or more significant is a lot more difficult [at Maplewood or Burnsville] than at Ridgedale or Rosedale,” said Ted Gonsior, managing director at commercial real estate firm JLL. Macy’s departure represents a unique opportunity to refresh and re-energize. “A lot of this real estate at some of these regional malls has been unchanged for a very long time,” he said.

“A strong performing Macy’s is a great thing for a mall, but I think an underperforming tenant of any size is the opposite,” said Gonsior. “Retail has changed, malls have changed. The concept of live, work, play [is key], and having that dynamic creates more reasons for not only daily trips but a regular presence in the market.”

Maplewood Mall 

At Maplewood Mall, Nashville-based Brookwood Capital Advisors is currently in talks with a tenant for its two-level Macy’s space. Brookwood Capital Advisors owns the center parcel of Maplewood Mall after taking it off auction in 2023.

The prospective tenant is planning to invest at least $10 million to redevelop both floors, said Ben Hamd, Brookwood’s managing director.

While it’s too soon to name names, Hamd said the prospective tenant for the anchor spot, and other interested parties for space at the mall lean heavily into experiential retail. For instance, Hmongtown Marketplace in St. Paul acquired the former Sears anchor spot in 2023 to add a second Hmongtown location. The project was originally slated to open this year but is currently working through what Hamd described as financial hurdles.

“We have enough fashion for the Maplewood community,” Hamd said. Kohl’s and JCPenney have anchor stores at Maplewood along with a host of national apparel brands like H&M, Charlotte Russe, Claire’s, and Hollister. There’s also a two-level Barnes & Noble and a Ramsey County service center.

He did acknowledge that Maplewood’s Macy’s was still a decent performer for the mall at $15 million in annual sales.

While a number of storefronts were empty at Maplewood Mall this week, Hamd said every single space is spoken for and that lease negotiations are underway. A Korean head spa and massage chain store and a VR maze will be opening soon on the first floor; a med spa just recently opened on the second floor; and a slime museum just got approved. “Experiential retail is the future of more Class B malls like this,” said Hamd.

“We’re full as if it’s 1975,” Hamd added, referencing Maplewood’s opening year. “We’re not full with all the national brands. We’re full of a mix of national brands and locals. But full counts as something, in my opinion.”

Brookwood Capital Advisors has also invested in events such as meet and greets with smaller celebrities, like actor John O’Hurley from “Seinfeld” and “Family Feud,” which Hamd said have been effective in generating online engagement and increased traffic to the mall.

“Our goal is to retain the national businesses that are there because that’s what people want, add good regional and local businesses that are community-oriented, and have more of an experiential twist,” he said.

Burnsville Center 

At the south end of the metro, Burnsville Center is still grappling with its path forward. A group of investors, including the local Wyn Group, acquired most of the mall—an estimated 28 acres—in 2023 with plans for an Asian supermarket and international food hall, which are set to open soon. That purchase did not include the JCPenney and Sears anchor spots, owned by Penney Property Sub Holdings and Buck Hill Partners respectively.

Said Wyn Group CEO Marshall Nguyen, “It saddens us that Macy’s is leaving, but we don’t own [the anchor spot].” According to Dakota County Property records, the current owner of the property is May Department Stores Co., which Macy’s acquired in 2005. “There’s nothing much that we can do in regards to that, so we’ll continue to push forward.”

Nguyen pegged the current redevelopment efforts at Burnsville Center as “phase one.” Sustainable Safari is a petting zoo still in its soft opening phase at Burnsville Center, he said. Taking over 25,000 square feet inside the mall, the interactive tenant brings hundreds of visitors per weekend, according to Nguyen. “Once you have a great tenant list, you start to attract other tenants,” he said.

Meanwhile, the city of Burnsville is pushing blueprints for Burnsville Center Village, a plan that calls for “pedestrian-friendly retail, technology-driven shopping, recreational and natural spaces, mixed housing, hotels, and eateries” on the mall site, which the Wyn Group is helping oversee.

“We’re starting to see progress,” said Nguyen.