• Wall Street Journal, Tuesday, July 6, 2010 10:33 AM

Macerich, which owns 71 U.S. malls, has rebuilt the three-story, 550,000-square-foot Santa Monica Place mall without a main roof, dividing space into corridors of storefronts that converge on an open-air plaza. Shoppers can send employees on errands as they would a hotel's concierge -- one of the innovations that signals an industry in transition.

Rather than build new malls in outlying areas, landlords like Macerich are frequently renovating and upgrading existing properties, Kris Hudson reports. Restaurants occupy the entire third floor at Santa Monica Place, and although the parking is admittedly inadequate, officials point out that there are public garages nearby.

"It's a reflection of the maturation of the industry," says Jim Sullivan, an analyst with Green Street Advisors. "The prospects for new retail developments on the edge of town are unlikely in the next couple of years."

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