Strip malls are more American than apple pie, but they’ve never been loved (except by their owners). Besides, they’re not doing so well these days. Ava Bromberg, a PhD candidate at UCLA’s School of Public Affairs, says this can change. Her idea is to turn strip malls into community-owned hotspots that people actually like. Check out how Bromberg envisions the strip mall of the near future.

Exurb: Strip malls are so prevalent but also so maligned. There’s almost nobody who speaks well of a strip mall. Why focus on strip malls?

Bromberg: Well, I don’t think a lot of people in my profession are necessarily pro-strip malls but they’re such a basic a part of American towns that I think they are ripe for reinvention. It’s not really by accident either that they’re so prevalent. They’re the product, in many ways, of combinations of land use decisions aimed at increasing the municipal tax base and a business model that has historically worked very well for strip mall and shopping center owners. For decades, strip malls have been well located and programmed to be lucrative and functional commercial centers in cities, exurbs and rural towns. These also became the default model for commercial life in the US. They are suffering right now but they are still vital and full of potential. Most importantly, they’re a key infrastructure we’ve inherited. So they’re part of what we have to work with if we are to successfully transition to having more socially, ecologically, and economically sustainable cities and towns.

Exurb: Yet, as you said, they’re suffering. So what’s going on?

Bromberg: The commercial real estate market in general, of course, isn’t doing so well for a variety of reasons related to the real estate bubble and excessive borrowing, but also the contraction of the retail market in the current crisis. In fact, many say we have yet to see the true bottom of the commercial real estate market.

In the past, owners had an easier time securing long-term leases with national chains and other credit tenants. Now there are major vacancies as stores close and companies go out of business. In some strip malls and shopping centers, remaining tenants have renegotiated their leases for lower rents because of what’s called co-tenancy clauses—that certain anchor stores would be there to draw traffic. This is hurting the bottom line for some of the large commercial center owners. Regardless if the current owner can afford to keep large or small spaces empty, it is certainly not pleasant to encounter a huge half-empty building. Luckily, I think there is renewed openness—and need—for models to activate these spaces, and I think a lot of potential.

Beyond that, consumers also seem to be changing their habits. People are saving more or paying down their debt, some are adopting different attitudes towards consumption. Whatever the reason, there is increased interest in more affordable forms of entertainment and experience beyond shopping. I think commercial centers have an opportunity not only to adjust to that shift, but also enable new forms of work and community to happen.

Exurb: What would make strip malls better?

Bromberg: I think there are two main interventions that could improve strip malls. The first has to do with the mix of programming. The second has to do with the opportunity to develop new financial models. These can be achieved separately, or together. In the case of programming, we can mix in more things that aren’t retail into these sites, and also remix the size and types of spaces people could rent for their businesses, to work, or socialize. This is already happening in ad hoc ways, but could be approached more holistically and comprehensively. Incorporating fresh opportunities to work, learn, play, as well as shop, is at the core of the model we’re developing.

The speculative version of a strip mall we call a CoOperating System essentially reinvisions the standard shopping center as a commercial, cultural, and civic center, a neighborhood hub. The exact mix and what it would entail would largely depend on the area demographic, partner organizations, businesses, and groups interested in operating there.

A key component of the idea is that it can be a cooperative enterprise, and introduce a distributed ownership structure for commercial real estate. There are a lot of ideas for reprogramming strip malls and shopping centers starting to emerge right now. Part of what interests me most is the potential to develop a different model that can create direct financial benefits, whether for individual members or at the community scale. A cooperative ownership structure lets us benefit from the value we create by shopping somewhere; this is the idea at the heart of a consumer cooperative. There is also the potential to build on long standing ideas and fresh practices of solidarity economies, to attract and support businesses we want to have in our neighborhoods.

My goal is to have a simple model that could be replicated, a flexible but durable institutional structure that could be tailored for any neighborhood. In one version, this entity could be interested only in reprogramming the empty site. In another, they may be interested in purchasing the building. Right now we’re raising funds to develop the model with ICA Group in Boston and get it up and running.

Exurb: We have a site that was abandoned by Kmart. Home Depot tried to move in, but the community fought it. This has happened elsewhere around the country too. Do you think your concept could work in these old Kmart sites?

Bromberg: There are certainly ways to do that in an old Kmart space. I think this concept could be applied to almost any commercial site that can attract the interests of a critical mass of people.

One of the interesting things about the exurbs, for example, is that a lot of people own their homes and they’re invested in the area. They most likely plan to stay put until their kids finish school. It seems to me that, especially where these folks have overlapping interests, say in making sure there was fresh locally grown food, or safe afterschool activities for kids, they could be using the same energy that we see people muster to fight a Home Depot in some places to attract the kinds of thing they actually want. This is a much more productive kind of land use battle, and I think the pressing need is to enable this kind of collaboration. I think it’s also important to note that Home Depot, WalMart, and Kmart own a lot of these properties and could be positive contributors to a shift in what happens at these sites.

And ideally, I think these spaces can be reconfigured so they are not only more energy efficient than your standard carbon guzzling big box building, but actually producing energy. In any case, it seems likely that, if there was an easy way to do it, many people might be interested in investing in their neighborhoods in this way because they would benefit.

Exurb: Your idea is to structure this as a cooperative. Are cooperatives generally viable?

Bromberg: There are many different kinds of cooperatives and some are better positioned to make money than others. Some are extremely lucrative. There are consumer cooperatives, like the successful outdoor store REI. They had over $1.43 billion in sales in 2008. In the UK there is a multi-billion dollar enterprise called The Co-operative. Land-o-Lakes is an agricultural cooperative owned by producers and members and makes over $6 billion per year. Organic Valley is an agricultural cooperative that is committed to much more sustainable farming practices and grosses over half a billion dollars a year. Employee-owned companies are another type of cooperative. Cooperatives are a tried and successful concept, and their structure can be tailored to the project at hand. One of the exciting things about this project is that we’re drawing from what has worked for other enterprises to come up with the best way to create community benefits from redeveloping empty shopping centers and strip malls.

Exurb: Your speculative proposal for the CoOperating System is brilliant. I can’t imagine anyone not wanting something like this in his or her neighborhood. What are the roadblocks, though?

Bromberg: I think that depends on the place and the project. In some cases, a local group already has control of the building, and the issue I discuss with them is about getting the word out and enticing others to participate – that’s more a matter of good organizing practices and stamina than a roadblock. In other cases, the issue is getting adequate financing to do the project right, developing a workable partnership structure, and demonstrating that the benefits of the project outweigh the risks. Right now we’re looking for the foundation, a courageous lending institution or partner that sees the potential of this idea and the value of investing in these important details. But I wouldn’t call it a roadblock. It’s simply the work to be done!

Exurb: How could any person or group even begin to promote the idea of something similar to CoOperating Systems?

Bromberg: I encourage people to get in touch with me about it. I think there are many ways into this, and there certainly are a lot of empty spaces to activate, and small and large ways to do that. I can be reached by email at ava (dot) bromberg (at) gmail (dot) com.

THANKS AVA!

Note: Also check out Planetizen’s story on Ava Bromberg’s new strip mall vision.