Developers are turning malls into housing, with no sign of slowing

Here’s how and why malls are being repurposed into living spaces

In the 70s, 80s, and even the 90s, the mall had it all – food, clothing, socializing, and more. Of course, these days malls have fallen out of favor as the ways we shop, socialize, and spend our free time have evolved. What’s left is abandoned spaces that once served as a type of town square are left to decay.

Aging malls take on new life and relevance

That all started to change in relatively recent history, as developers began to see the potential of these spaces through the lens of our national housing inventory shortfall. With real estate data showing that 34 million square feet of mall space in the U.S. is vacant, there is certainly an opportunity for the enterprising developer and visionary. It’s no surprise, then, that the trend of converting malls and shopping centers into multifamily housing, or adding housing to the properties, continues to grow, and the popularity of these conversions is showing no signs of slowing.

The movement toward malls has multiple benefits beyond repurposing underutilized spaces. It addresses a lingering housing shortage. It also draws people back to businesses that call malls their home, including restaurants and retail shops that have managed to keep operating even as a mall itself struggles.

How mall conversions into apartments are taking shape

As a developer, you may wonder how to approach a project like this. By working with a trusted design and build team, you can optimize your investment and maximize the property’s potential. Here are a few ways developers are taking on housing projects on or near mall properties.

• Some developers are razing anchor stores and constructing apartment buildings in their place and on what was previously a parking lot.
• Apartments have been constructed actually inside closed stores.
• Unused mall space has been gutted and converted into mixed-use space, incorporating apartments, stores, restaurants, cinemas, and more.
• Entire malls have been turned into apartment complexes.
• Some former or current malls have been redesigned to incorporate outdoor spaces and luxury living areas.
• Some malls have been converted into online store warehouses, while others have been turned into sports complexes.

Developers who wish to explore options to build near or convert underutilized mall spaces into housing may face some challenges. For example, the mall footprint may not be optimal for housing, an issue that can often be addressed by the innovative designers at your design-build firm. Zoning regulations, outdated lease agreements, existing easements, and infrastructure can also pose issues.

Developing mall space into apartments? We can help.

Regardless of these potential challenges, living and playing at the mall appears to be a trend that is going to stay as the lifecycle of the American shopping center continues to evolve and maintain relevancy. Whether you’re considering building luxury housing properties or affordable housing solutions here in the La Crosse, WI, or Rochester, MN, region, or other areas in the Upper Midwest, you may want to reimagine your next investment property at a mall. With the right team of commercial construction experts on your side, conversion of mall property can offer an innovative approach to solving the housing crisis and making malls cool again.