ELLSWORTH, Maine — The manager at Maine Coast Mall says the recession and tenant mismanagement, not high rent, is the reason the High Street shopping center is half-vacant.
On the heels of last month’s announcement that the mall’s Fashion Bug would close, some current and former mall tenants said Monday that vacancies and low foot traffic were a t least partly because of mall management and “prohibitive” costs of rent at the mall.
While the mall has seen two new tenants in the past year — TJ Maxx replaced Marden’s and Governor’s Restaurant took over the old Friendly’s — seven of 13 mall suites will be vacant when Fashion Bug closes its doors. Some of those suites have been vacant for years.
Carl Siefken, manager of the Maine Coast Mall, was unavailable for comment Monday. On Tuesday, he said the mall’s rents are fair.
Lease negotiations have two sides, he said, and renegotiation is an option if tenants don’t like what they see on the table. The mall renegotiated a lease for one tenant, Maine Coast Cinemas, this year to help the theater take on the analog-to-digital conversion necessary to stay open.
On Monday, the theater’s owners said they were “fairly happy” with the agreement, but said management was part of the reason for the mall’s stagnation. Siefken disagreed.
“If we were outside the norm, we still wouldn’t be getting leads coming in, people saying they’re interested in coming to the mall,” he said. “Our rent is what the market will pay.”
Siefken said large retailers will be important to the mall’s revitalization. Local and Maine-based businesses have struggled at the mall and elsewhere to navigate the economic twists and turns since the housing bubble burst in late 2007, he said.
“Governor’s, TJ Maxx and Hannaford are doing great,” he said. “Every time we put a family-owned business in here, they last about two years and go belly-up. They have kind of a poor record, but we know in any business the first year is the worst.”
The mall’s suites, most of which are under 10,000 square feet, also make renting difficult, Siefken said, because most national stores need more space.
Despite that, the mall is in talks with two national companies about coming to Ellsworth, Siefkin said, though he couldn’t identify those firms because negotiations are ongoing.
“It’s all just business,” he said. “It’s not like we’re out to punish people for being here. We’re trying to attract businesses to the community, to give not only a place to shop, but a place to have a good selection of stores.”
Follow Mario Moretto on Twitter at @riocarmine.
I worked at Strawberries closed in 2007 due to high rent and unreasonable lease requirements. At least, that’s what my manager told me, when he told us we were all going to be out of a job right after Christmas. For years, they had been paying one price and signed a year to year lease, no worries. As soon as the Mall heard about the Beckwith project, they wanted to raise Strawberries’ rent, and INSISTED on a 3 year lease. Strawberries chose to close instead.
It was just more then high rent that caused Strawberries to close. The prices were insanely high for everything they sold, the staff I encountered didn’t know the first thing about proper customer service and were rude, not to mention the store was a grave yard for the last couple of years it was open.
Not true. I worked there til the last day. Sales were brisk, and it was primarily due to the lease that they closed. The mall manager caught wind of the fact that they wanted to move to the Beckwith Project, and tried to trap them into a longer lease, so that they wouldn’t be able to open a brand new store when that project was slated to open. Little did everyone know, it was to get put on hold like everything else when the economy tanked.
I thought Strawberries went out of business nation wide?
You got lied too then, that is why they closed. There are several reasons
OMG, did no one at Strawberries tell you about this thing called an iPod. That is why they closed.
iTunes?
“Our rent is what the market will pay” … except for some reason, it won’t! Not our fault!
Yeah, they are still getting leads, people calling saying they are interested in coming to the mall, til they hear the rent prices!
I would be curious what the rent prices are — if they are so reasonable, would they be willing to share them with general population? I also wonder if maybe they offer a “deal” on rent for at least the first couple of years in an attempt to be more marketable, but once there is a good thing going, they “renegotiate” to a higher rate and that is the downfall of the businesses that were doing so well before?
Again, not throwing out accusations at all, but just a couple of possibilities, maybe? Especially if the leases are year to year (or every 2-3 years)….
planet fitness, chuck e cheese and a decent chain resturaunt would be nice to have in the area
Governor’s is definitely a nice change to the area i think
I do like Governors – but it is “more of the same” for a lot of people, we have a number of homestyle cooking restaurants in the area already – Helen’s for one – “How about something different?” is what a lot of people are asking…
Chuck e cheese????? Oh good grief, please NO. There are SO many other good businesses that could go in there….. But you are right on with a Planet Fitness or similar.
you must not have small kids
I had wondered about something similar to the Maine Jump – but more of a family entertainment complex – almost a combo of Chuck E Cheese and the Maine Jump – coming to the area… There is the old Darling’s building right at the bottom of the hill that I think would be great for that. Heck, throw a skating rink (roller skate/blade) in the back and a nice family-friendly restaurant in the front and we might just have something! It would be some place other than bowling, ETC, or Springers that you could have a birthday party at, not to mention a place to go on rainy days.
Sure Carl except that TJ Maxx is not doing fantastic they are in fact struggling also TAKE DOWN THE SIGNS OF THE EMPTY STORES!!!!
Why are they struggling? Not enough business? This is the first I heard this piece of news…. I had a friend say just a couple weeks ago they were hiring….
Is it true that Tim Horton’s is coming to Ellsworth? thats the local rumor if you will, as well as a new dunkin donuts in the lot next to Darlings auto mall…..The lease at dunkins at walmart is up this year and I heard the new owner of the other one(btw who is a real piece of work) is building the other…..
Typical of downeast businesses…charge through the roof, wonder why no one pays your stupid prices, and then go out of business. You don’t have to try and get your entire salary for the year out of one payment!!!
I wonder if the owner of this mall thinks that no rent is better than some. That is the direction it is heading in.
Yes most malls will let store fronts sit empty for years sometimes forever, before lowering the rents. It is the way they all do business… I wanted to rent a space in a strip mall once and they wouldn’t look at me because I was local… I had a frend who opened a national sandwich joint up at a small strip mall. it was small only sat 20 people, mostly take out and he paid $5,000 mthly plus, plus, so it averaged around 6 grand a month plus his utilities… and thats a cheap spot. retail stores the size of like shop and save pay up to 50 grand a month plus, plus.
So the answer to your question is it better empty waiting for the big deal is I guess so.
There are always two sides to a story, but I think in this case the mall management needs to re-think a few things. The structure is deplorable; the roof leaks, the tiles are loose in the floor and it just plain looks like we are living in the 1970s. Why would anyone want to rent space there? Hannaford is doing well because they realized the problem and took it upon themselves to renovate their portion of the mall. I am not one to waste, but the place ought to be bulldozed and redesigned.
I agree that this property has major maintenance issues. Somebody should check the oil underground oil tank out back… most likely is leaking into the ground water; there is TONS of dirt found in the oil; I have seen this first hand. The tenants have to pay for maintenance on their heating system; It cost a lot of money to maintain substandard heating systems. Mr Paperback spent tens of thousands on heating maintenance. There are several places where the cement between the cinder blocks has eroded; you can see through the walls. This mall is an eye sore and badly needs a face look. Just another dump….Clean up your act.
“If we were outside the norm, we still wouldn’t be getting leads coming in, people saying they’re interested in coming to the mall,” he said. “Our rent is what the market will pay.”
Your half EMPTY dude, so, Where are all of those businesses BANGING down the doors to get in there? Some of the spots have been empty for YEARS, and Ellsworth was a growing city not that long ago, now its back to the seasonal venue it was 10 years ago.
Lowe’s closed it’s doors too……….Ellsworth just doesn’t have enough year round backbone to sustain the larger business.
Where Wal-Mart goes so closes other businesses.
Why do people shop Wal-Mart?
Wait until Amazon does same delivery for free, which is what it is working on. Now that States can force Amazon customers to pay sales tax Amazon can have distribution centers in every State.This will allow same day delivery for free. Then even WalMart will be gone.
As much as I dislike Wal-Mart I do not see that Amazon, even if it offers same day delivery for free, will ever put Wallyworld out of business.
Are you asking a rhetorical question, or are you looking for an honest answer? I will admit, I am a Wal-Mart shopper, and can even tell you why, if you care to know…
So the story goes…
Shoppers were tired of K-mart and Sears-the monoliths- and really enjoyed shopping at a little 5&10 in Bentonville, AK.
Prices were low (lots of specials) and Sam was only a few years ahead of M. Marden.
I went to Lowe’s – once! I saw some beautiful flowers and took a picture of one of them. I was informed that Lowe’s did not allow people to photograph their flowers. The associate who informed me of the probation was polite but firm. I agreed that it was their store and they had the right to make the rules. I stopped shooting, put my camera away, left, and never returned.
the same thing will happen to you at Wal Mart, Target or any other large chain. They all prohibit people taking photos of their products and prices. It’s basically to do with the competition. Wal Mart (the one I worked at in Florida) would send us department managers out to competitors and check their prices on products.
Sorry but the same thing has not happened to me at Wal Mart or Hannaford’s. I have gotten some really beautiful flower shots in both stores. I have never visited a Target. I would think that all stores engage in comparison shopping and have no problem with that. I guess that I have gotten use to expecting a higher degree of civility here in Maine.
Most businesses of any size do not allow photographs taken inside. Except restaurants of course.
how is this the recessions fault. ellsworth is one of maines fastest growing cities and hancock county has a growing income. One idea could be to build an apartment complex next to the building so people working in these jobs could live near by. If they lived next to there they would be more likey to shop there also.
That “mall” is also about 15 years overdue for a major renovation/facelift.
I do not live in Ellsworth nor do I know the manager of the mall. I have observed that the mall is not very attractive and seems to be in a state of disrepair. Maybe if the management did major renovations, it would attract more businesses and generate more sales.
If I missed it excuse me because I quickly glanced at the story – did the BDN report actual rental prices per square foot? This is the relevant question, and I doubt that the reporter bothered to learn that key fact.
Not that I saw.
Lease terms are generally privately negotiated between the business owner and mall management. There’s no advertised set rental rate, like apartments. These negotiations are actually mentioned in the article.
Hi Maine65,
I did ask about rent prices, but those are private details that, unlike public information from municipalities or the like, are not within my power to obtain unless the business wants to divulge them. In this case, it did not.
However, Daniel Taylor is correct. Mr. Siefken informed me that each rental price per square foot was negotiated individually and differed form store-to-store.
Thanks,
Mario
Thanks for that information – I was wondering the same thing as well. It would be nice to have a “generalized” estimate or even roughly what it breaks down to per square foot….
It would be nice if the owner of the mall had been willing to share that info. IMHO, by not having it somewhere in the article seems somehow sneaky or dishonest. Even if I was one that may be considering leasing a storefront, I would be some what turned away to not have a starting point to work with.
Chuck E Cheese would be great for this area. Not much for little ones to do in Ellsworth area and they have great birthday parties and a lot of fun games. Even I like to play the games. Come on down “Chuck”
“Every time we put a family-owned business in here, they last about two
years and go belly-up. They have kind of a poor record, but we know in
any business the first year is the worst.”??
The last time the movie theater was closed it was owned by the same company that owns Bangor Cinemas. “Mom and Pop” re-opened it, maybe four years ago? whats he talking about. If youre charging what the market will bear, then why are the stores empty, and full o0ver at mill mall?
To be clear: as the co-owner of Maine Coast Cinema, we NEVER said the costs were “prohibitive”. In fact, when speaking with the reporter, I said that I was happy with our lease arrangement! They were willing to work with us regarding the new technology required for our business.
Additionally, our conversation revolved around the empty storefronts, and most of my statement is missing from the article. While explaining that I’m sure the manager bears some responsibility, it has got to be very difficult to manage and recruit businesses in this economic atmosphere, and act as the go-between for business owners, and mall owners. Also, that I was saddened by the appreciable loss of foot traffic in the mall.
Brow-beating the mall manager and owners is not going to improve the business climate here.
It might improve things if they were to take some responsibility for the state of the business climate here. The mall owners are the only ones whose efforts have resulted in people developing a real dislike for the mall while having some affection for the stores who are stuck there.
I am happy that the owners of the Cinema are satisfied with their place in the mall, but let’s face facts, what choice do they have? I can’t think of a place in Ellsworth that they could move a theater into.
Hi Leona,
Just to clarify, the “prohibitive” statement in the original article was not attributed to you, but to the office manager of the Gold Star Cleaners.
Thanks,
Mario
Thanks Mario,
It wasn’t really clear since multiple statements were lumped in together.
Are you playing Randolph the brown-nosed reindeer next winter?
mean spirited. it doesnt look like the remaining shop owners are at fault here.
If the mall cannot deliver customers to stores, then the stores are better off relocating. The mall management has done whatever it can to make the mall harder for ordinary people to use. If Hannaford’s was not there, I would have no reason to subject myself to the most unpleasant parking lot that I have ever experienced. It is really scarey sometimes to drive that lot in the winter.
Perhaps the owners might consider selling to someone who understands that a mall is not in the business of renting store space, malls are in the business of selling the customers that it attracts and turns into loyal mall shoppers. In this case, the mall owners appear to have shot themselves in the foot. They simply have nothing to offer anyone but store space.
I will give the mall parking lot designers one thing though. They managed to create the only intersection in Ellsworth with three stop signs. Boy, are they fun to navigate if you have a few tourists stopped while trying to figure out what to do next.
You might contact MDOT about the design — it was forced on the mall owners with the develpoment on Walmart, Walgrens and the Hampton Inn
Paula’s Hallmark was a mom and pop and there for years. So was the Chinese restaurant Green Tea. They got sick of never having heat in the winter. They bought the old Movie Gallery and opened Shinbasi there and are doing great.
The seasonal Christmas vendors that used to set up at this mall are also now few and far between. He raised the rents, shrunk the spaces, and squished as many vendors in as he could and it looked like a flea market. He ruined what was a nice thing for local businesses and residents as well. I don’t even think the wonderful Santa goes in anymore during the Holidays.
Plus the place is falling apart, birds nest in the ceiling, and bird guano drips down out of the ceiling tiles in the hallway. Lovely!
The dry cleaner has moved to a new location and so has the pet shop. Both locally owned.
This mall was in rough shape when I was a teen way back when…needs a total and complete overhaul.