Why Some Pennsylvania Malls Thrive While Others Crumble

Successful malls focus on experiential retail, mixed-use elements, and strong retailer support to attract diverse tenants and visitors.

Published on Mar. 5, 2026

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The article explores why some Pennsylvania malls, like Capital City Mall and Park City Center, have been able to stay afloat even as traditional shopping centers decline due to the rise of e-commerce and the COVID-19 pandemic. Experts say thriving malls offer more than just traditional retailers, focusing on experiential retail, mixed-use elements, and strong retailer support to attract a variety of tenants and visitors. Meanwhile, malls like the Harrisburg Mall and Colonial Park Mall have struggled, with high vacancy rates and some facing demolition. The article also highlights the success of the massive King of Prussia Mall, which has diversified its offerings to include luxury brands, entertainment venues, and food halls.

Why it matters

This story highlights the changing landscape of the retail industry and the strategies malls are employing to adapt and remain relevant. As traditional shopping patterns shift, malls that can offer unique experiences, diverse tenant mixes, and a focus on entertainment and dining are better positioned to thrive. The contrasting fates of malls in the Harrisburg area and the success of destinations like King of Prussia Mall provide insights into the factors driving the 'have and have-not' divide in the retail real estate sector.

The details

Successful malls like Capital City Mall and Park City Center have diversified their tenant mix, moving beyond traditional fashion retailers to include more experiential offerings like entertainment venues, co-working spaces, and unique dining options. This has helped drive increased dwell time and sales. In contrast, malls like the Harrisburg Mall and Colonial Park Mall have struggled with high vacancy rates and are facing demolition or redevelopment. Industry experts attribute the diverging fortunes to thriving malls' ability to adapt to evolving consumer behaviors and provide a 'unique experience' for shoppers.

  • In the middle of a cold winter weekday, the Capital City Mall in Lower Allen Township had brisk business and no vacancies.
  • Around 2 p.m. on a recent weekday, the Park City Center in Lancaster had plenty of visitors.
  • In 2024, the King of Prussia Mall welcomed the entertainment venue Camp.
  • In 2025, the Sloomoo Minimoo, an immersive slime playground, opened at the King of Prussia Mall.
  • In 2026, Dick's House of Sport and Level 99 are set to open at the King of Prussia Mall.

The players

John Mercer

Head of global research for Coresight Research.

Joe Aristone

Chief revenue officer at PREIT, the owner of the Capital City Mall.

Stephanie Cegielski

Vice president of public relations and industry education for ICSC, a member organization for the marketplaces industry.

Todd Putt

Assistant general manager of the King of Prussia Mall.

Daniel Urie

The author of the article.

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What they’re saying

“Successful malls are tending to focus on experiential retail, mixed-use elements and strong retailer support. They attract a variety of tenants, from luxury to experiential brands, and are increasingly incorporating services such as wellness and co-working spaces. This diverse tenant mix helps attract more visitors.”

— John Mercer, Head of global research for Coresight Research

“Even going back before COVID, there was kind of a break in what I call the have and have-not universe. The malls that were in the have category, they were going to be the clear winners in the trade area.”

— Joe Aristone, Chief revenue officer at PREIT

“Many malls are welcoming a wider array of tenants from healthcare to education to digitally native brands looking for physical storefronts. This diversification ensures properties become multifunctional destinations rather than single‑purpose shopping venues, which is consistent with the industry's shift toward mixed-use, experience-driven environments.”

— Stephanie Cegielski, Vice president of public relations and industry education for ICSC

“We're able to offer our shoppers and our customers a unique experience every time they come here. I think the addition of some of the entertainment focus concepts that we've had has been a strategic one.”

— Todd Putt, Assistant general manager of the King of Prussia Mall

What’s next

Next year, Dick's House of Sport and Level 99 are set to open at the King of Prussia Mall, potentially offering activities like climbing, batting cages, and ice skating, as well as a 'destination for adults featuring real-world, interactive social gaming'.

The takeaway

The diverging fortunes of Pennsylvania malls highlight the importance of adapting to evolving consumer behaviors and providing a diverse, experience-driven tenant mix to attract and retain shoppers. Successful malls are embracing a mix of traditional retail, entertainment, dining, and other non-traditional uses to create vibrant, multifunctional destinations, while struggling malls face the risk of high vacancy and even demolition.