IBJNews

Tenant exit leaves Circle Centre 4th floor almost vacant

Back to TopCommentsE-mailPrintBookmark and Share

The GameWorks virtual-realty arcade at Circle Centre mall in downtown Indianapolis has closed, leaving the struggling fourth floor with even more vacant space, and a movie theater as the lone remaining tenant.

Glendale, Calif.-based Sega Entertainment USA Inc., which owns the GameWorks chain, announced the closing this week as part of a company-wide restructuring involving seven total GameWorks locations nationwide.

“This challenging economic environment has forced us to make these tough financial decisions,” Sega President and CEO Cory Haynes said in a prepared statement. “The changes were necessary for us to move into the future as a robust, exciting and viable entertainment company.”

Just nine of 24 original GameWorks that once operated throughout the United States remain. For Circle Centre, the vacancy leaves a gaping, 27,400-square-foot hole on a floor already fraught with occupancy troubles.

A small notice posted at the GameWorks entrance at Circle Centre reads: “Due to technical circumstances beyond our control, we have been forced to temporarily close.”

A press release from Sega leaves no doubt, however, that the arcade won’t be reopening. GameWorks employed six people at the Circle Centre location, the company said.

Les Morris, spokesman for Circle Centre manager and part-owner Simon Property Group Inc., on Wednesday said he was unaware GameWorks had shut down and declined to comment on the fourth floor’s ongoing vacancy problems.

Its departure leaves the United Artists Theatre as the sole occupant on the floor that once housed the Brewskis, Flashbaxx and World Mardi Gras nightclubs, as well as a restaurant and a Ben & Jerry's ice cream parlor

The nightclub spaces have been empty since 2003, prompting Simon to consider a renovation that would transform 114,000 square feet on the fourth floor into modern office space with a wood-paneled entrance, high ceilings and skylights.

It’s unclear whether Simon still is pursuing the strategy.

Bill French, a senior vice president at the local office of the St. Louis-based Cassidy Turley commercial real estate brokerage, said multi-level retail leasing is extremely challenging, even in huge markets like Chicago. Indianapolis' struggling downtown office market adds to the difficulties.

“To that end, I’m not certain how aggressive [Simon is about an office conversion],” French said, “because there is a fair amount of space available these days.”

The fourth floor remains a blemish on an otherwise successful mall. Circle Centre occupancy jumps to 96.7 percent when excluding the space, according to an annual filing with the Securities and Exchange Commission. Simon did not disclose the occupancy rate when including the space.

The top floor was a late addition to the mall that opened in 1995. Buoyed by the success of fourth-floor entertainment attractions at Mall of America in Minneapolis, developers decided to boost Circle Centre's entertainment offerings.

The city owns the land under the 736,000-square-foot mall and paid more than half of the $319 million cost to build it. The city leases the property to Circle Centre Development Corp., a partnership of 20 companies that owns the mall itself. Simon's stake is 15 percent, according to SEC filings.


 

ADVERTISEMENT

  • Day Care
    Perhaps a day care for all of the people who work downtown? Simons could work out a parking fee and parent and child could have more time together!
  • Xscape?
    maybe they could get Xscape to open another location there. Either a Dave and Busters or Americas incredible pizza would be cool too.
  • Here's an idea!
    With more and more underutilized space accumulating, someone in the big ol Fed'l Gov't. will probably make a tax break offer owners can't refuse if they'll let it be used to house the homeless. Now, how's that for thinking outside the box, eh? And who are the 20 or so ownership partners, anyway?
  • apartments
    I'd live up there! Seriously. :-)

    (With some good soundproofing, of course)

    Or how about a page out of Glendale's playbook and put some sort of library up there, something outside the box?

    Or some sort of business incubator?

    I just don't understand why Simon hasn't been more aggressive, it seems like it's just money down the tubes.
  • Office Conversion
    The 4th Floor of Circle Centre is not well-integrated with the rest of the mall, nor is it easily accessible. Also, with all the restaurants and bars available at street-level throughout downtown, there was little incentive for patrons to trek up four floors to visit a couple of cheesy and generic bars.

    The arcade seemed to do well, and perhaps the space could be re-purposed as a high-tech entertainment attraction for children/youths. Alternatively, Simon could simply wait for the commercial office market to pick up and then convert the top floor to stylish office space.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT