Harrisburg Malls in 2024: Transformations, Challenges, and Celebrations

January 7, 2025

The year 2024 has been a pivotal one for the malls in the Harrisburg area, with each mall – Harrisburg Mall, Colonial Park Mall, and Capital City Mall – experiencing unique changes that reflect broader trends in the retail and commercial real estate sectors. The story of each mall encompasses transformation, challenges, and milestones, providing valuable insights into the evolving landscape of American malls. This article delves into the notable occurrences that shaped these malls over the past year.

Harrisburg Mall: A New Beginning

Major Redevelopment Plans

Harrisburg Mall, situated at 3501 Paxton St., Swatara Township, had embarked on significant changes, signaling a new beginning. The process commenced in January 2024, with tenants receiving notices to vacate by the end of the month, paving the way for redevelopment. This led to the departure of long-standing businesses, including the well-known Kondu restaurant, creating space for a fresh start.

By February, the demolition process kicked off, beginning with the Macy’s building. The transformation efforts picked up pace in March when St. John Properties, the mall’s owner, unveiled plans to transform the mall into a multi-use business community named Swatara Exchange. The redevelopment plans subdivided the property into seven lots, each earmarked for various business purposes. This redevelopment reflected a broader trend of shifting from a retail-exclusive space to a mixed-use hub that could attract diverse tenants and revitalize the area.

Tenant Relocations and New Developments

As the redevelopment efforts continued, tenants progressively relocated from the mall. H&R Block vacated the premises by May, followed by DXL Big + Tall in June. Some tenants, such as 2nd & Charles, were in the process of finding temporary relocation solutions, while prominent businesses like Bass Pro Shops and Applebee’s Grill remained as permanent tenants, ensuring some continuity during the transition period.

The future Swatara Exchange is planned to feature a range of amenities, including 13,600 square feet of single-story office space, substantial retail allocations, and dual pad sites designated for medical providers, financial institutions, and other businesses. This transformation aims to create a vibrant mixed-use community, fostering economic growth and attracting a diverse tenant base. The redevelopment marks a significant shift towards adaptive reuse of retail spaces, making it possible for the area to sustain its vibrancy amidst changing market conditions.

Colonial Park Mall: Ownership Changes and New Ventures

Turbulent Times and Ownership Transition

Colonial Park Mall, located at 4600 Jonestown Road, Lower Paxton Township, faced a year filled with challenges and significant changes. In March 2024, the mall experienced a setback with the closure of Colonial Park Cinemas 4, followed by an on-site water main break that added to the disruption. The mall saw an increase in store vacancies, with notable departures such as Rue 21 exacerbating the situation.

Amidst these tumultuous times, the mall underwent a crucial ownership transition in September 2024. It was acquired by 4600 Jonestown Road LLC for $8.8 million from Kohan Retail Investment Group. The new owners introduced plans to inject new life into the struggling mall by incorporating a Fun City Adventure Park. This new venture aims to offer recreational attractions that will draw visitors and enhance the mall’s appeal, marking the beginning of a strategic turnaround effort.

Current Occupants and Future Plans

Despite the ongoing challenges, some tenants remained steadfast at Colonial Park Mall. Businesses like Battle 5 Extraction, Mall Tailor & Cleaners, and Tap ‘n Arts Dance Studio continued their operations, albeit within a struggling environment characterized by a high vacancy rate. With around 52 vacancies against 26 occupants, the mall’s vibrancy remained in a state of flux, reflecting broader challenges faced by retail developments amidst shifting consumer habits.

The new ownership is committed to developing well-rounded recreational and retail spaces to reinvigorate the mall. The introduction of Fun City Adventure Park epitomizes this strategy, aiming to create dynamic attractions that will draw crowds and boost foot traffic. This multimodal approach is envisioned as a pathway to rejuvenate the mall, adapt to modern consumer expectations, and enhance its competitive edge in an evolving retail landscape.

Capital City Mall: Resilience and Celebration

Emergence from Bankruptcy

Capital City Mall, positioned at 3506 Capital City Mall Drive in Lower Allen Township, showcased remarkable resilience in 2024. In April, the mall successfully exited Chapter 11 bankruptcy, achieving a substantial reduction in debt by approximately $835 million. The parent company, PREIT, underwent reorganization to emerge as a private entity, strengthening the mall’s financial stability and laying the foundation for long-term sustainability.

This financial restructuring was a critical juncture, allowing Capital City Mall to stabilize its operations and position itself more robustly in the market. By addressing financial vulnerabilities, the mall ensured a renewed focus on growth and operational excellence, providing a steady platform to achieve sustained success in an increasingly competitive environment.

Celebrating 50 Years

October 2024 marked a significant milestone for Capital City Mall, as it celebrated its 50th anniversary with a series of festivities. This celebration was not just a commemoration of the past but a testament to the mall’s continued relevance and adaptability. Over half a century, the mall had evolved to meet changing consumer preferences, underlining its resilience and ongoing commercial viability.

The celebration offered an opportunity to reflect on the mall’s journey while also looking ahead to future possibilities. With a nearly full occupation rate of around 90 occupants and only one vacancy, the mall demonstrated strong tenant retention and appeal. The celebrations mirrored the community’s significant role in sustaining the mall’s vitality, underscoring the importance of adaptability and customer engagement in retail success.

New Entrants and Stability

Throughout the year, Capital City Mall welcomed several new tenants, further enhancing its diverse offerings and customer appeal. Miniso, a popular consumer goods retailer, began operations in July, followed by HBG Jewelers’ kiosk in August, relocating from Harrisburg Mall. Adding to the diversity, Asoul Ramen commenced operations in October, enriching the food court with unique culinary offerings.

The mall’s stability is reflected in its robust tenant mix and employee distribution. With approximately 1,100 employees, the majority of whom are employed full-time, this stability underscores the mall’s success in maintaining a dynamic yet steady operational environment. This approach not only ensures consistent customer satisfaction but also enhances the overall shopping experience, reinforcing Capital City Mall’s reputation as a resilient and adaptable retail destination.

Common Themes and Broader Trends

Redevelopment and Adaptive Reuse

The significant transformations at Harrisburg Mall and Colonial Park Mall are emblematic of a broader trend within the retail sector towards redevelopment and adaptive reuse. Traditional retail spaces are increasingly being reimagined as mixed-use applications, integrating office spaces, entertainment venues, and service-oriented businesses. This shift aims to sustain mall viability by attracting a wider range of tenants and adapting to evolving consumer preferences that favor multifaceted destinations.

Economic Optimizations

Economic restructuring has emerged as a pivotal strategy for these malls, reflecting broader efforts to adapt to changing market dynamics. The ownership transition at Colonial Park Mall and the fiscal consolidation at Capital City Mall, which resulted in a substantial reduction in debt, exemplify strategic efforts to optimize economic performance. These measures highlight the importance of financial stability and adaptability in ensuring long-term sustainability within the American mall landscape.

Tenant Relocation and Retention

Tenant turnover has been a consistent theme across all three malls, impacting overall foot traffic and vibrancy. The departure of long-term tenants and the introduction of new ones underscore broader economic patterns and consumer spending habits. Each mall’s efforts to attract new tenants and diversify offerings are critical in maintaining their relevance and appeal in a rapidly changing retail environment.

Conclusion

The year 2024 marked a significant period for malls in the Harrisburg area, with Harrisburg Mall, Colonial Park Mall, and Capital City Mall each undergoing unique transitions. These changes are in line with broader trends in the retail and commercial real estate sectors. This year has been characterized by transformation, challenges, and new milestones for each mall, all of which provide valuable insights into the evolving landscape of American shopping centers.

Harrisburg Mall has seen a mix of new stores and closures, reflecting the dynamic nature of consumer preferences. Colonial Park Mall has been focusing on revitalization efforts, aiming to attract more visitors with updated facilities and engaging experiences. Meanwhile, Capital City Mall has successfully integrated more entertainment options, making it a popular destination for both shopping and leisure activities.

These developments mirror the larger trend of malls adapting to shifting consumer behaviors. As online shopping continues to grow, physical malls are striving to offer unique, immersive experiences that cannot be replicated online. The story of these Harrisburg area malls highlights the resilience and ingenuity required to thrive in today’s competitive retail environment. This article explores the key events and trends that have shaped these malls over the past year, offering a detailed glimpse into the future of American malls.

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