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The shopping center industry remains a family business for generations
Maybe they were born with silver shovels in their hands, but second- and third-generation developers have earned the privilege of leading the companies that began the shopping center industry.
In an industry where mergers and acquisitions have consolidated the ownership of shopping center portfolios amongst a select group, many of the biggest and best companies remain family businesses. The same families that began developing shopping centers in the mid-1900s and fostered the era of enclosed regional malls continue to lead development.
John Bucksbaum, CEO of General Growth Properties (GGP), says, "One of the most amazing things to consider I is that an entire industry was dominated by a generation. Our fathers built the first shopping centers and enclosed malls and then continued to build out the entire United States." Like many developers, such as Edens & Avant, founded in 1966 by Joe Edens Jr., General Growth traces its roots to a grocery store.
The right moves: "We thought one of the attractive things about getting out of the grocery store business and into real estate would be better hours," laughs Matthew Bucksbaum, chairman of GGP and one of the original founders. "We spent as much time, maybe more, developing shopping centers than we had running the grocery chain."
The first shopping center development was, according to Matthew, a near disaster. "It was a great lesson in what not to do," he explains.
"Eventually we got it built and paid off the mortgage-but only after we hocked the family jewels, so to speak."
For all the anguish and hard-learned lessons, the end result must have looked pretty impressive. Younkers Department Stores asked the Bucksbaums to build a shopping center in eastern Iowa, which was followed by a center in Des Moines, and, ultimately, General Growth's first enclosed mall in Cedar Falls, Iowa.
"We never would have thought we'd find ourselves managing 140 to 150 malls around the country," admits Matthew. "There wasn't a business plan. We just took advantage of the opportunities we saw. And, in the end, we made all the right moves."
Bringing his son John into the business was another move that has proved advantageous. "After my brother passed away, John...