‘No signs of life coming’ or evolving space? Nittany Mall tenants weigh in on the future
Across America, shopping malls are struggling — and Centre County’s own Nittany Mall is no exception. At least a dozen stores have closed in the past four years, leaving dark storefronts and blacked-out windows in their wake.
The downfall of the classic American mall has been in the headlines for years now. A 2017 report from Credit Suisse predicted a quarter of U.S. malls would close by 2022. A study from Capital One found that an average of 1,170 shopping malls closed every year between 2017 and 2022, double the average rate of 581 that closed per year from 1986 to 2017.
Problems malls already faced with the rise of online shopping were only exacerbated by COVID-19. Since the pandemic, there’s been a steady stream of businesses that have struggled to stay afloat inside the Nittany Mall. And while businesses have continued to close, the possibility of a mini-casino that many feel could revitalize the space and bring people back to the mall remains in legal limbo.
Jeff Bailey, owner of Finatics Aquarium and Pet Center, said foot traffic has evaporated and all but the most loyal customers have become scarce. Bailey has been a tenant of the mall since 2016, but in January the mall sought a court order to have him evicted over $20,000 in unpaid rent.
“There’s no signs of life coming,” Bailey said. “The mall is dead and dying. Look at all the black, just like a funeral.”
Loss of businesses
With the pandemic forcing businesses across Pennsylvania and the nation to shutter, it’s unsurprising the Nittany Mall suffered during 2020. Some mall retailers, like Christopher & Banks, filed for bankruptcy with the pandemic as a driving force. But other reasons for store pullouts are unclear.
Since 2020, Nittany Mall has lost stores and restaurants including:
Victoria’s Secret
Macy’s
Dino’s
Bradley’s Book Outlet
Kay Jewelers
Rampage Room
Hot Topic
Kozee’s Sports Emporium
Christopher & Banks
Stover’s Furniture
Journey’s
Chew Chew Bun
The loss of major anchor stores is also a concern for some business owners like Bailey. Although Durham and Gabe’s are anchor stores with access to the rest of the mall, Rural King has no access to the rest of the mall and the former Macy’s location — where the mini-casino would be located — sits empty.
“The anchors aren’t really an anchor anymore,” Bailey said.
Although some new businesses have moved in, balancing rent prices with retail profits can be difficult for local business owners. Some of the storefronts that have opened in recent years are not for retail spaces but for activity centers and nonprofit organizations like the Centre Region Active Adult Center.
Kristy Owens, director of Centre Region Parks and Recreation, said as a government-funded program that also relies on membership fees and participation, she can understand how other mall tenants feel.
“I can certainly relate to what other business owners are going through in an aspect of asking, is it an affordable space for us and wanting to ensure that we can actually provide the services that we need,” Owens said. “We certainly have a little bit of a different lens in providing public service to a community.”
Nittany Mall, which is owned and managed by Namdar Realty Group, wrote in an email to the CDT that their goal remains to determine the best use for the mall for the local community.
“Nittany Mall Management is actively working with a number of local, regional and national retailers on backfilling current vacancies throughout the mall,” a spokesperson for Namdar wrote. “Ownership has also been exploring various redevelopment avenues for the shopping center. While those conversations are ongoing, the potential scope of redevelopment may inform a new strategic direction for the property and ultimately influence which vacancies are prioritized.”
Would a casino change things?
Despite the loss of local business, the main discussions surrounding Nittany Mall for the past two years have been about the planned casino. In September, the Pennsylvania Supreme Court took jurisdiction of several legal challenges to the project. The Pennsylvania State Gaming Control Board unanimously voted to approve the casino’s license in January 2023 but cannot actually issue it until all legal appeals have been resolved.
The about $130 million planned casino would be in the 94,000-square-foot space of the former Macy’s. Open 24/7, the casino would offer 750 slot machines, sports betting, table games, a food court, a restaurant and a space for live entertainment.
But the proposed casino has also brought some community backlash, including thousands of residents signing a petition against the project. Some residents fear an increase in crime and gambling addictions if the casino opens.
Mall tenants have been split on the casino as well. Some believe it could help bring new customers to the space, along with the 350 proposed jobs from the casino, but others fear its negative impacts are too great.
“I think that the crime and things that it’s going to bring into this area way outweigh the benefits,” Bailey said. “It’s not going to bring people in (to the mall) — it’s going to bring people in from out of town.”
Owens has a different view, saying the casino could help spread the word about the Active Adult Center to more seniors and increase the mall’s foot traffic.
“You know, we try to look at it on a positive end of things and hoping that it actually will reach more seniors,” Owens said. “Maybe people who don’t know that we’re there will recognize that we’re there at this location.”
Lisa Novak, owner of Dance Academy of State College located inside the mall, said she’s hoping the casino will be an upscale place that provides another recreational activity to the mall. She said she’s confident that the mall’s security and the casino’s own security would handle any problems that could arise.
“No, I’m not worried at all,” Novak said. “A lot of people have asked me that and why would I be worried?”
Namdar has also voiced its support for a casino inside the mall, seeing it as a potential solution to help fill retail spaces. The casino is even already listed on the mall’s directory.
“A casino, in particular, would be a welcome addition to both Nittany Mall and the surrounding area,” a spokesperson for Namdar wrote in an email to the CDT. “Not only would this type of entertainment venue be great for the current mix at the mall, but we’ve also seen the impact that the inclusion of casinos can have on other properties.”
A different future
Between the possible casino and the ever-changing retail landscape, it’s unlikely Nittany Mall will ever look how it once was. But some tenants see a different future in store.
Despite the decrease in retailers, the mall is not empty, though the people in there on an average day may not be your typical shoppers. Each day, dozens of seniors from the Active Adult Center stop by to walk loops within the brightly lit atrium. With ample parking and no crowds, it serves as a perfect indoor track, with plenty of benches and stopping points for seniors to sit and chat.
“The mall is a great location for us right now, in that it provides easy access,” Owens said. “It’s part of a main bus loop, it offers adequate space and parking, so our attendance actually has been on the rise over the last few years and has caused us to open up more programming opportunities during the week to keep up with the demand.”
The bustling Active Adult Center, along with the Nittany Fencing Academy and Novak’s dance studio, show a new future for the mall as more than just a traditional retail space, Novak said.
“I would love to see it as a community center,” Novak said. “We don’t really have in State College a large indoor community center like this that could provide a lot of connections for people.”
