Retail malls across the United States and Canada are being repositioned to mixed-use or redeveloped completely to new uses, such as office buildings, housing, education, healthcare/medical facilities, warehouses, and even town centers for suburban communities.
While this trend began more than a decade ago, the Covid-19 pandemic accelerated the shift in enclosed malls to mixed-use projects, as well as a consumer preference for open-air lifestyle retail centers, which has played a role in the downturn in mall performance.
The most successful malls are retaining their retail components and adding other uses and entertainments to make them a more attractive, compelling, experiential place and attract more foot traffic. An analysis by real estate advisory and brokerage firm JLL of 153 U.S. mall redevelopments underway found that 46 percent are mixed-use projects that are incorporating at least three uses. The most popular additions are housing (53.5 percent), office (34.6 percent), hotels (22.2 percent), and health and medical facilities (13.1 percent).
Read the full article on our sister site, Hospitality Investor.