Lloyd Center's indie stores help keep the zombie mall alive
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Mark Benthimer of All American Magic says his customers seek him out at Lloyd Center. Photo: Joseph Gallivan/Axios
Lloyd Center is morphing into a mall of independent businesses while it awaits a yearslong redevelopment.
Why it matters: The mall is providing small business owners a temporary hub of creativity, at cheap prices, while the status of the redevelopment plans remains unclear.
Catch up quick: Last September, mall owners Urban Renaissance Group and KKR Real Estate Finance Trust submitted plans to give the 29-acre property a $1 billion-plus makeover that would tear up the mall and create a mixed-use neighborhood with shops, offices and housing.
- Meanwhile, earlier this month, local music promoter Monqui Presents and entertainment group AEG announced plans for a venue in the vacant Nordstrom space, to open by mid-2026.
How long the venue will last if the mall site is completely redeveloped is unclear. Sandra McDonough, a spokesperson for Urban Renaissance Group, told Axios the company would not comment on the proposed venue.
Zoom in: In the meantime, Urban Renaissance Group is trying to keep the mall alive with indie businesses, such as those providing venues for arts groups, and play spaces and proprietors selling used goods.
Case in point: Skate Oregon School is a new, alternative tenant. Founder Jennifer "Chickpea" Ottenberg used to rent spaces around town by the hour until Lloyd Center offered her a permanent location in an old Finish Line store. Her customers followed her to the mall.
- "It's great that the owners have thought outside the box and looked to the community," she told Axios.
The intrigue: Despite Lloyd Center's "zombie mall" status, some tenants say they're happy to do business there.
- Mark Benthimer of All American Magic told Axios he bounced around area malls for 30 years and has loved his three years in Lloyd Center. He estimates he sees 60% regular customers, 40% foot traffic.
- It's a hands-on business, where he teaches customers for free how to use the magic tricks he sells.
By the numbers: According to Willamette Week, the mall is 75% occupied if you exclude the anchor stores and include the offices. In June, Willamette Week counted activity in 67 of 135 commercial spaces, a rate of about 50%.
- Long rows of shuttered stores have lost their signage and even mall stalwarts such as Spencer's Gifts and Old Navy are gone.
For some, the struggle is real. Juana Ruiz runs Natalia's Boutique on the first floor, selling high-quality children's clothing made in Spain.
- Some days they may get five people in the store all day, she tells Axios.
- Juan Ruiz, her husband, blamed the lack of anchor tenants, saying without them fewer people are walking past their doors.
Yes, but: They feel obliged to see out their lease with its low rent.
- "We got a quote from a mall in Vancouver, a smaller section was $3,000 to $4,000 a month. Here's $1,000 a month, so that's not comparable," said Juan.