As traditional shopping malls and retail centers have struggled with declining sales and changing consumer preferences, many developers have looked for ways to repurpose these properties into mixed-use developments incorporating residential, office, and retail spaces.
Mixed-use developments can provide a more vibrant and diverse by combining different uses and amenities in one place. They also can help revitalize struggling areas and create new economic opportunities. By combining different various uses and amenities, mixed-use developments can attract a broader range of visitors and residents.
According to Dimitri Balakirev, Malls.com Founder and CPO, more than 20 percent of enclosed shopping centers in the next few years could be converted into hybrid configurations combining use as retail, office, residential and other formats.
Let’s look at examples of the most famous and successful shopping centers converted into mixed-use developments.
The 78 – North Randall, Ohio
One of the largest US malls converted into a mixed-use complex is the former Randall Park Mall in North Randall, Ohio with over 2.2 million square feet of retail space. It struggled in the 1990s and eventually closed in 2009.
Recently, the mall has been redeveloped into a mixed-use complex called “The 78” that includes 1,200 residential units, over 1 million square feet of office space, and 300,000 square feet of retail and entertainment space.
Commercial Observer: the top cities for mixed-use development in the US, based on the number of projects, are Los Angeles, Chicago, Seattle, Boston, and Washington, D.C.
According to a survey by the Urban Land Institute, the most popular types of tenants in mixed-use developments are restaurants (68%), followed by specialty retail (62%), entertainment venues (51%), and grocery stores (47%).
Mall of America – Bloomington, Minnesota
The Mall of America was the largest in the United States, with over 5.6 million square feet of retail space. However, it struggled with declining sales and foot traffic in recent years.
In 2017, the mall began a $325 million redevelopment project, adding more than 50 new retail, dining, and entertainment options and a new hotel and office tower. The Mall of America’s redevelopment has transformed it into a mixed-use destination with various attractions beyond just shopping, such as an indoor amusement park, aquarium, and miniature golf course.
46% of U.S. mall redevelopments are mixed-use projects incorporating at least three uses and most retain retail use
86% of mall redevelopments retain retail use, highlighting the importance of retail’s role as a complement to other uses.
Residential and office are the most popular U.S. mall redevelopment uses
54% of mall redevelopments incorporating residential use and nearly 35% incorporating office use.
Shingle Creek Crossing – Brooklyn Center, Minnesota
Brookdale Mall was a thriving shopping center with over 100 stores and restaurants. The mall has been redeveloped into a mixed-use complex called “Shingle Creek Crossing, ” including retail, office, and residential space. The redevelopment project involved demolishing much of the mall and reconfiguring the remaining space to create a new shopping center and mixed-use development.
The Shingle Creek Crossing complex now includes a Target store, a variety of restaurants and shops, a medical office building, a 100-unit affordable housing complex, a park with walking trails, and green space.
Malls has to shift into a multi-purpose destinations, with a mix of office, residential, and cultural amenities. They will have to provide a broader and more dynamic experience that consumers can’t find elsewhere – as single-purpose retail malls will expectedly wither as more shopping continues to shift online.
Northland Center – Southfield, Michigan
The Northland Mall was a popular shopping destination with over 1 million square feet of retail space.
In recent years, the mall has been redeveloped into a mixed-use complex called “Northland Center”. The redevelopment project involved demolishing much of the mall and reconfiguring the remaining space to create a new mixed-use development.
The Northland Center complex now includes a senior living community, office space, and a variety of shops and restaurants. The development also features green space, walking trails, and a community garden.
One Westside – Los Angeles, California
The Westside Pavilion was a famous shopping center that opened in 1985, but it began to struggle with declining sales and competition from online retailers.
In recent years, the mall has been redeveloped into a mixed-use complex called “One Westside” that includes residential, office, and retail space.
One Westside features 584 luxury apartments, office space, a food hall, and various shops and restaurants inclusing HomeGoods, Marshalls, Flaming Pot and Panda Express. The development also includes a rooftop park with walking trails and outdoor seating.
Georgia Tech university data:
About 1,500 malls have been built in the United States since 1956, when the Southdale Center opened in Edina, Minnesota.
About 1,000 malls are still in use as malls, and about 500 have been closed or repurposed.
Fifty-six projects have been built as mixed-use urban centers, and another 75 are planned for conversion in the future.
South Bay Galleria – Redondo Beach, California
Another excellent example of a giant American mall transformed into a mixed-use complex is the former South Bay Galleria in Redondo Beach, California. The South Bay Galleria was a famous shopping center that opened in 1985 but struggled with declining sales and competition from other retail centers.
In recent years, the mall has been redeveloped into a mixed-use complex called “South Bay Galleria Redevelopment” that includes residential, office, and retail space. South Bay Galleria Redevelopment features 300 residential units, office space, retail shops, restaurants, and a new movie theater. The development also includes a public park, a community garden, and a new fitness center.
The Crest – St. Louis, Missouri
The Crestwood Mall was once a popular shopping destination in the St. Louis area, but in recent years it has fallen into disrepair and become a blight on the community. However, plans are underway for the redevelopment of the site, which could bring new life to the area and boost the local economy.
The redevelopment plans for the Crestwood Mall include constructing a mixed-use development that will feature a combination of retail, office, and residential spaces. The project is expected to create hundreds of new jobs and generate millions of dollars in economic activity.
One of the key components of the redevelopment plan is creating a community gathering space that will serve as a central hub for events and activities in the area. In addition to the community space, the new development will include a mix of high-end and mid-range retail stores, restaurants, cafes, and entertainment venues.
Overall, mixed-use developments are an exciting trend in real estate development. We expect to see more of these projects in the coming years as developers continue looking for new ways to repurpose and revitalize underutilized properties.
According to Mordor Intelligence research, the mixed-use market in the US is expected to reach a value of $1.4 trillion by 2025, growing at a compound annual growth rate of 6.2%.
Company Name: Malls.com
Contact Person: Dimitri Balakirev
Email: Send Email
Country: United States