Netflix's Next Hit Show Could Be a Dead Mall Near You

Artistic design of a Netflix House location. (Netflix/TNS)

When Dallas landed one of the first Netflix House sites in the world, it was quite an accomplishment. Where he lands is also an interesting story.

Terry Montesi of Trademark Property Co., the Fort Worth-based real estate company that has managed Galleria Dallas since 2018, said earlier this week that trust was part of the equation in bringing the concept to the North Dallas mall.

This is because there are unknowns with a new experiential concept like Netflix House.

This also marks another conversion.

When conversions are discussed in the real estate industry, office-to-residential conversions tend to garner the most headlines, especially as vacancy rates in the country's urban centers rise and cities seek solutions.

But the idea of ​​bringing together more experiences, residences, homes and other types of commercial products is also a common thread.

Many conversion efforts simply seek to add a mix of uses – and therefore users – to maintain foot traffic and provide reasons to stay at a destination.

A traditional filler for a department store concept would have been another department store.

Netflix's vision couldn't be more different than clothing racks, the only shoehorns you'll see for months, and cosmetics counters. Guests could go from waltzing to a replica of Bridgerton before moving on to a Squid Game-inspired competition.

Netflix House at the Dallas Mall, owned by Metropolitan Life Insurance, takes up considerable space.

“This is a 100,000-plus square foot user experience that will be experiential, power-based, dynamic and rotating,” said Kevin Kessinger, president and COO of Trademark, during a round table on conversion. space at the National Association of Real Estate Editors' annual real estate journalism conference on June 19.

“All of this drives traffic to the center, which allows you to elevate the dining and entertainment concepts. Putting it all together is really, really compelling,” Kessinger said.

He shared a quip from a friend that retail isn't underbuilt, it's under-demolished.

The phrase highlights the prime location of many retail sites and shopping centers.

Kessinger said the key to potential conversions is cooperative retailers who see the value and benefits of adding other uses, especially multifamily, because it brings shoppers right to their front door. The same goes for owners of commercial assets.

Netflix House is expected to open at the Galleria Dallas in 2025. The other planned location is planned for King of Prussia, Pennsylvania, outside of Philadelphia.