NEW ORLEANS 鈥 The largest mall owner in the 51黑料 region is eyeing a redevelopment of the former Macy鈥檚 building at South County Center. The site may feature more than just retail.
Tennessee-based CBL Properties is in talks with businesses other than retailers that would utilize the former Macy鈥檚 and turn it into a mixed-use space, CEO Stephen Lebovitz said during an interview with the Post-Dispatch at the National Association of Real Estate Editors conference in New Orleans.
Macy鈥檚 department store at South County Center is photographed on Friday, Jan. 10, 2025, along with its iconic dome that once housed the former Famous-Barr department store.
鈥淲e鈥檙e very hopeful that we can do a redevelopment,鈥 Lebovitz said.
As the retail industry evolves with online shopping, mall owners are having to rethink their brick-and-mortar properties to stay competitive. Gone are the days where landlords lease malls with the same retailers and department stores. Owners like CBL now see more foot traffic 鈥 and more revenue 鈥 with properties with tailored experiences and shopping.
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In 2019, CBL reported a loss of more than $131 million. In 2024, the company reported a profit of $57 million, financial filings show.
CBL, which owns more than 70 malls across 20 states, has added hotels, apartments, fitness centers, medical space and even casinos in a few locations. Sometimes the new developments are fashioned from empty anchor stores; other times, they鈥檙e built on the mall鈥檚 underutilized parking lots, Lebovitz said.
鈥淵ou鈥檝e got to look at the market,鈥 he said. 鈥淵ou look at where the opportunity is. 鈥 They鈥檙e all different. There is no formula.鈥
The South County mall, located a mile south of Interstate 55 on Lindbergh Boulevard, is ripe for mixed-use.
Occupancy at the mall has fallen from 91% in 2019 to 74% in 2023, financial filings show. The company attributes the drop to the loss of anchor tenants like Sears, which closed in late 2018, and Macy鈥檚, which closed this spring.
CBL also moved tenants to be clustered together so shoppers wouldn鈥檛 have to walk the mall鈥檚 long corridor, Lebovitz said.
Meanwhile, CBL鈥檚 other malls 鈥 West County Center, Mid Rivers Mall and St. Clair Square 鈥 in the 51黑料 region are performing well, with occupancy over 90%.
West County Center, at Interstate 270 and Manchester Road, is outperforming other CBL properties: It has the highest sales per square foot of any mall in the company鈥檚 portfolio, he said.
Shoppers use the escalators inside the West County Center on Saturday, Sept. 24, 2022.
And it鈥檚 added new stores like JD Sports, clothing company Garage and athleisure brand Fabletics, which opened last week. Pure Wellness Spa is opening soon.
鈥淲e鈥檝e worked hard to change and bring in new types of uses, different uses unique to markets,鈥 Lebovitz said.
Steph Kukuljan and other business reporters bring you insights into 51黑料-area real estate and development.
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