Tuesday, August 21, 2007

Ontario Mills enters new era


With 18 new stores, five relocations and 10 remodels this year so far, the Ontario Mills mall seems to be undergoing a sort of rebirth.

Owned by Simon Property Group since late March, the outlet mall, which opened in 1996, is seeing some updates.

Sue Oxarart, marketing director for Ontario Mills, however, said the recent changes and improvements are the result of the mall's decade-long existence.

"A lot of leases have five- or 10-year terms," Oxarart said. "Once the mall celebrates its 10th anniversary with the renewal of leases, you start to see quite a facelift and remodel to some of these stores. If a store wants to stay with us another 10 years, sometimes there's a requirement to remodel the store."

Many brand-name stores have been appearing, too.

"Every year you see new stores and changes, but this has been a great year for new tenants," Oxarart said. "It's been dynamic since January. When you have that many new stores, it's pretty dramatic all at once."

New arrivals since the beginning of the year include Banana Republic Factory Store, Abercrombie Outlet, Aldo Shoes, BCBG Maxazria, Daniel's Jewelers, Via Havana and Victoria's Secret - which will open in a few weeks, among others.

Oxarart attributed the mall's new stores to the efforts of leasing teams and requests from customers.

Two oft-requested stores are Lane Bryant and Jones of New York - both of which are in discussions with the mall's leasing representatives, she said.

Since its opening, Ontario Mills - which defines itself as a discount value mall distinct from Rancho Cucamonga's outdoor lifestyle center, Victoria Gardens - has been wildly successful, said Greg Devereaux, Ontario city manager.

The 24 million shoppers who visited the mall in 2006 overshadowed attendance even at Disneyland, which had 14.73 million visitors the same year.

"It's been a very successful mall," Devereaux said. "At the time it opened, it was the primary shopping and entertainment experience out here in the Inland Empire."

But before Simon Property Group's acquisition of Ontario Mills and other assets from the struggling Mills Corp. earlier this year, some residents and city officials had grown disenchanted with the mall.

"From a sales standpoint, the mall continued to be successful. But I don't think it was maintained as well as we would've liked," Devereaux said, adding the landscaping was neglected and storefronts looked inconsistent in recent years.

Ultimately, Mills Corp. had been in a financial crisis, and some say the company started to invest resources in new properties rather than in maintaining existing ones.

Devereaux said he is confident the Simon Property Group will keep the mall looking sharp.

"I've never seen a Simon property that wasn't maintained in a first-class condition," Devereaux said. "So I believe Simon will address that."

Les Morris, spokesman for Simon Property Group, recently said the company was still evaluating all of its new properties - including Ontario Mills.

"We've proven over the years that we can bring value to properties we acquire," Morris said. "Malls don't stay the same. They either get better or they get worse, and we're laser-focused on improving every property we have."

Morris said, however, there were no plans yet for changes, and no further details could be disclosed.

In the past few weeks, new pygmie palm trees, rockscapes and lights were installed around the property to replace trampled grass and bare planters, Oxarart said.

Oxarart said Ontario Mills' storefronts are a lot more consistent and up-to-date today.

"When Ontario Mills first opened in 1996, everything was new at the same time, there were a lot of bright colors and neon, and the theme reflected 1996," Oxarart said. "As new stores were brought in, they had a totally different look, so there was a transition. Now, there's a cleaner, sharper edge that's updated."

With new ownership and shifting demographics in Ontario - and, consequently, Ontario Mills' market - more changes could be afoot.

Devereaux said he'd like to see the property used differently in the future.

"Another disappointment was that (Mills Corp.) didn't look at taking advantage of the property, such as mixed-use opportunities," Devereaux said. "I think, given the amount of land there, there's potential for additional offices, hotels, residential, maybe even retail."

One way to utilize all that space is by putting in parking structures, he said.

"As the Inland Empire matures as a real-estate market, flat parking fields become more valuable developed than left flat, and I think that's part of the examination Simon will do," Devereaux said.

Although Simon representatives could not comment on those ideas, there are factors that will inevitably change things for the mall.

Oxarart said Ontario Mills' primary market consists of people living within 22 miles to the west, seven miles to the north and 25 miles to the south and to the east.

With all the development coming to the city - including a substantial amount of Class A office space and higher-end residential units - Ontario Mills' market is sure to change.

Some of the newest stores - such as Via Havana, which opened a few weeks ago and sells hand-rolled cigars - already reflect that future market.

"The demographic is changing, along with income levels," Oxarart said. "And that's why you're starting to see more brand names now in Ontario Mills."

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