Less than three years after this sign went up at the Charlottetown Mall it will be coming down as Target will be closing its store in the mall on April 8.
©Guardian photo by Brian McInnis
The Charlottetown Mall is dividing the vacant space left by Target into six smaller locations.
RioCan Real Estate Investment Trust, which owns the mall, is also in negotiations with three undisclosed national tenants, saying talks "are at an advanced stage''.
Target took over as anchor tenant in the mall late in 2013 before closing all of its stores across Canada earlier this year.
That left a big hole for the Charlottetown Mall to fill, 107,800 square feet of space to be specific.
The entire mall is nearly 389,000 square feet.
While some of the properties in Canada affected by the departure reached agreements with retail giants like Walmart and Canadian Tire to fill the gap as anchor tenants, the Charlottetown market already has both and they already operate as stand-alone locations.
National retail experts said filling 107,000 square feet of space in a mall today would be challenging in a big market, much less in Charlottetown.
It also created a hole in the bottom line.
Target paid RioCan $4.20 per square foot in rent at the Charlottetown Mall.
RioCan announced this week that it has reached a financial settlement with Target Corporation, the U.S. parent of Target Canada Co. in regards to indemnity agreements that were signed.
Christian Green, investor relations for RioCan, referred The Guardian to the group's website when asked what the plans were going forward.
The former Target space will be reconfigured to accommodate four large format tenants ranging in size from approximately 20,000 square feet to 30,000 square feet each, as well as two small shop tenants totalling approximately 5,000 square feet each.
Approximately, 7,000 square feet of the vacant premises will be converted to landlord storage or demolished.
Construction is expected to begin before the end of the year with tenants taking possession and opening in the second half of 2016.
When it's all finished, the redeveloped space is expected to generate base rental revenue of $12.46 per square foot and generate about $1.3 million annually.