{"id":1004698351,"date":"2024-01-23T03:25:03","date_gmt":"2024-01-23T11:25:03","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004698351"},"modified":"2024-01-30T08:52:46","modified_gmt":"2024-01-30T16:52:46","slug":"mixed-use-malls-and-the-15-minute-neighborhood","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/mixed-use-malls-and-the-15-minute-neighborhood\/","title":{"rendered":"Mixed-Use Malls and the 15-Minute Neighborhood"},"content":{"rendered":"\n<p>The pandemic was rough on indoor malls, but these properties were losing shoppers at least a decade before open-air shopping centers were designated as \u201cessential retail.\u201d Four years later, the malls that survived are being updated with tenants more relevant to today\u2019s shopper, while many B and C malls are being redeveloped as mixed-use properties.<\/p>\n\n\n\n<div class=\"wp-block-jetpack-slideshow aligncenter\" data-autoplay=\"true\" data-delay=\"3\" data-effect=\"slide\"><div class=\"wp-block-jetpack-slideshow_container swiper-container\"><ul class=\"wp-block-jetpack-slideshow_swiper-wrapper swiper-wrapper\"><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"802\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698594\" data-id=\"1004698594\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILL.jpg?w=802\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILL.jpg 802w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILL.jpg?resize=300,232 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILL.jpg?resize=768,594 768w\" sizes=\"(max-width: 802px) 100vw, 802px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">About 1,700 apartments units and 100 for-sale condominiums are proposed at Lulah Hills, which will replace the North DeKalb Mall in a North Atlanta suburb. The 2.5 million-square-foot project also includes a 150-key hotel and a Path Foundation trail connection to nearby Emory University. Photo courtesy of EDENS<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"805\" height=\"615\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698595\" data-id=\"1004698595\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILLS-Oyster-Bar-2.jpg?w=805\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILLS-Oyster-Bar-2.jpg 805w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILLS-Oyster-Bar-2.jpg?resize=300,229 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/4.-LULAH-HILLS-Oyster-Bar-2.jpg?resize=768,587 768w\" sizes=\"(max-width: 805px) 100vw, 805px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">This oyster bar is one of many new eateries being added to the repurposing of North DeKalb Mall. Photo courtesy of EDENS<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"4000\" height=\"3000\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698592\" data-id=\"1004698592\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-Hawthorne2.jpg?w=1024\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-Hawthorne2.jpg 4000w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-Hawthorne2.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-Hawthorne2.jpg?resize=768,576 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-Hawthorne2.jpg?resize=1024,768 1024w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-Hawthorne2.jpg?resize=1536,1152 1536w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-Hawthorne2.jpg?resize=2048,1536 2048w\" sizes=\"(max-width: 4000px) 100vw, 4000px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Rendering of Centennial\u2019s new mixed-use, open-air shopping center, Hawthorne Row, in Vernon Hills, a suburb of Chicago. Rendering courtesy of Centennial<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"801\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698591\" data-id=\"1004698591\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1-Westside-Pavallion-redevelopment.jpg?w=801\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1-Westside-Pavallion-redevelopment.jpg 801w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1-Westside-Pavallion-redevelopment.jpg?resize=300,232 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/1-Westside-Pavallion-redevelopment.jpg?resize=768,594 768w\" sizes=\"(max-width: 801px) 100vw, 801px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Westside Pavilion mall in West Los Angeles, which lost its anchor tenants to nearby Westfield Century City mall, was transformed to The West End office center. Pacific Hudson adapted 584,000 square feet to office use for Google, while a 230,000-square-foot former Macy\u2019s store was repositioned to office by GPI Cos. Photo courtesy of GPI Cos.<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"827\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698606\" data-id=\"1004698606\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/5.-Westminster-Col-Townhouses-along-Ditch-Park.jpg?w=827\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/5.-Westminster-Col-Townhouses-along-Ditch-Park.jpg 827w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/5.-Westminster-Col-Townhouses-along-Ditch-Park.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/5.-Westminster-Col-Townhouses-along-Ditch-Park.jpg?resize=768,576 768w\" sizes=\"(max-width: 827px) 100vw, 827px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">The Ascent, a 255-unit residential project with 26 affordable units, developed by Sherman Associates, includes townhome-style units at its base and is located along the southern edge of downtown Westminster, Colorado\u2019s new town center, facing a linear park. Photo by Neal Payton, Torti Gallas + Partners<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"827\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698589\" data-id=\"1004698589\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/6.-Eaton-Street-affordable-housing-with-pumpkins-copy-1.jpg?w=827\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/6.-Eaton-Street-affordable-housing-with-pumpkins-copy-1.jpg 827w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/6.-Eaton-Street-affordable-housing-with-pumpkins-copy-1.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/6.-Eaton-Street-affordable-housing-with-pumpkins-copy-1.jpg?resize=768,576 768w\" sizes=\"(max-width: 827px) 100vw, 827px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Designed by OZ Architects and developed by a partnership of Koelbel and Co. and Mile High Development, Eaton Street Apartments at Westminster, Col.\u2019s town center, provides 118 affordable apartments and 22,000 square feet of ground-level retail. Photo by Neal Payton, Torti Gallas + Partners<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"816\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698588\" data-id=\"1004698588\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/12-MainPlace-mall-002-2.jpg?w=816\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/12-MainPlace-mall-002-2.jpg 816w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/12-MainPlace-mall-002-2.jpg?resize=300,228 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/12-MainPlace-mall-002-2.jpg?resize=768,584 768w\" sizes=\"(max-width: 816px) 100vw, 816px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Aerial rendering of mixed-used components planned for MainPlace Mall, which is being redeveloped by owner Centennial, in Santa Ana, Calif. Rendering courtesy of Centennial<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"805\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698584\" data-id=\"1004698584\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/8-PV_RED-Development-002-1.jpg?w=805\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/8-PV_RED-Development-002-1.jpg 805w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/8-PV_RED-Development-002-1.jpg?resize=300,231 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/8-PV_RED-Development-002-1.jpg?resize=768,592 768w\" sizes=\"(max-width: 805px) 100vw, 805px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Redevelopment plans by Red Development for Paradise Valley mall near Phoenix, now simply known as PV, include the addition of hospitality, residential, entertainment, upscale restaurants, a central park and gathering places for events. Rendering courtesy of Red Development<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"808\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698582\" data-id=\"1004698582\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/11-800-Western.jpg?w=808\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/11-800-Western.jpg 808w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/11-800-Western.jpg?resize=300,230 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/11-800-Western.jpg?resize=768,589 768w\" sizes=\"(max-width: 808px) 100vw, 808px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Designed as a modern abstraction of Art Deco and Streamline Moderne by TCA Architects, this 12-story, 148-key hotel was added to the redevelopment of a deteriorating strip center into a three-story, contemporary shopping center in LA&#8217;s Korea Town. Western Plaza Capital Holdings LLC is currently developing 230 apartments on the site. Rendering courtesy of TCA-Architects<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"805\" height=\"620\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698614\" data-id=\"1004698614\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-hawthorn2.jpg?w=805\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-hawthorn2.jpg 805w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-hawthorn2.jpg?resize=300,231 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/13-hawthorn2.jpg?resize=768,592 768w\" sizes=\"(max-width: 805px) 100vw, 805px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">A rendering of Centennial\u2019s new mixed-use, open-air shopping center, Hawthorne Row, in Vernon Hills, a suburb of Chicago. Rendering courtesy of Centennial<\/figcaption><\/figure><\/li><li class=\"wp-block-jetpack-slideshow_slide swiper-slide\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"844\" alt=\"\" class=\"wp-block-jetpack-slideshow_image wp-image-1004698615\" data-id=\"1004698615\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/2-The-Horton-Campus-Euovolab-building-copy.jpg?w=1024\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/2-The-Horton-Campus-Euovolab-building-copy.jpg 1500w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/2-The-Horton-Campus-Euovolab-building-copy.jpg?resize=300,169 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/2-The-Horton-Campus-Euovolab-building-copy.jpg?resize=768,432 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/01\/2-The-Horton-Campus-Euovolab-building-copy.jpg?resize=1024,576 1024w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><figcaption class=\"wp-block-jetpack-slideshow_caption gallery-caption\">Some retail was maintained at the redevelopment of Westfield Horton Plaza mall in downtown San Diego, now known as The Horton Campus. Five stories were added to this former Nordstrom department store, which is being converted to science\/biotech R&#038;D use by Texas-based Stockdale Capital.  Rendering courtesy of AO Architecture and Stockdale Capital<\/figcaption><\/figure><\/li><\/ul><a class=\"wp-block-jetpack-slideshow_button-prev swiper-button-prev swiper-button-white\" role=\"button\"><\/a><a class=\"wp-block-jetpack-slideshow_button-next swiper-button-next swiper-button-white\" role=\"button\"><\/a><a aria-label=\"Pause Slideshow\" class=\"wp-block-jetpack-slideshow_button-pause\" role=\"button\"><\/a><div class=\"wp-block-jetpack-slideshow_pagination swiper-pagination swiper-pagination-white\"><\/div><\/div><\/div>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\"><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>\u201cPreferences of American shoppers have changed radically over the last decade,\u201d said James Cook, director of North American Retail Research at <strong>JLL<\/strong>. \u201cShoppers today, especially younger people, want a live-work-play environment,\u201d he added.<\/p>\n\n\n\n<p>Mixed-use is the next phase of the mall\u2019s natural evolution to a more viable and sustainable investment, said New York-based Rick Latella, executive managing director and retail practice group leader for <strong>Cushman &amp; Wakefield<\/strong>\u2019s Valuation &amp; Advisory group. \u201cIf done properly,\u2019 he noted, \u201cit will offer investors a much higher return than it would have if left as-is.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO<\/strong>: <a href=\"https:\/\/www.commercialsearch.com\/news\/what-lies-ahead-for-retail-in-2024\/\">What\u2019s Ahead for Retail in 2024?<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p>An analysis by JLL of 153 U.S. mall redevelopments underway found that 46 percent are mixed-use projects 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).<\/p>\n\n\n\n<p>These projects are the easiest to justify financially in metro areas with large dense or growing populations. California is seeing the most mall mixed-use redevelopments, followed by Texas and Florida, which have the fastest-growing populations, according to U.S. Census Bureau data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-converting-malls-to-town-centers\"><strong>Converting malls to town centers<\/strong><\/h2>\n\n\n\n<p>Dallas-based Centennial specializes in transforming underperforming retail centers into small-scale, 15-minute town center-like neighborhoods with experiential shopping and entertainment venues.&nbsp;<\/p>\n\n\n\n<p>\u201cWe are an active investor and redevelop and repurpose shopping centers in a way that makes them more vibrant, more relevant to today&#8217;s retailers, communities and shoppers,\u201d said Michael Platt, <strong>Centennial<\/strong>\u2019s senior vice president of Mixed-Use Development.<\/p>\n\n\n\n<p>Centennial, according to Platt, acquires underachieving properties with solid real estate attributes, like a quality location and substantial surrounding infrastructure. Currently, the company has eight mall mixed-use redevelopment projects underway. Rather than scraping a mall site and starting over, Platt\u2019s firm works with the pieces that are functioning well to add vibrancy, and then fills the spaces around them with a mix of uses.<\/p>\n\n\n\n<p>All Centennial centers, for example, will have multiple spaces for community engagement that can be programmed to provide outdoor venues for the enjoyment of on-site occupants and the community at-large. The firm\u2019s Mainplace Mall in Santa Ana, Calif., features four gathering places for the community, replacing former department stores with green spaces to host events that drive consumer engagement, such as farmers markets, concerts and movies under the stars.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The economic advantages<\/strong><\/h2>\n\n\n\n<p>Multifamily and office connected with vibrant retail amenities lease up faster at higher rents, according to Platt. This is true for hotel guests, too.<\/p>\n\n\n\n<p>\u201cIt&#8217;s great to be able to stay in a hotel where you can walk out and very quickly find a few different restaurant options and entertainment in a close synergistic relationship to the hotel,\u201d Platt said.<\/p>\n\n\n\n<p>Further, having residents, hotel guests and office workers on-site extends the property\u2019s activity to 18 hours daily, he added.<\/p>\n\n\n\n<p>These additional uses bring a captive population with purchasing power to mall retailers\u2019 doorstep, increasing vibrancy and viability and helping with leasing of retail and other uses. Platt finds that retail sales performance improves in these centers, residential and <a href=\"https:\/\/www.commercialsearch.com\/news\/how-lifestyle-offices-are-redefining-work-life-balance-urban-xs-ceo-weighs-in\/\">office components<\/a> generate top rents, and hotels garner higher daily rates and occupancy.<\/p>\n\n\n\n<p>A&nbsp;mix of uses also makes projects more feasible&nbsp;today because it lowers the risk for lenders if there&nbsp;are less risky&nbsp;components like multifamily in the mix suggests&nbsp;Zach Demuth, JLL\u2019s global head of hotels research.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO<\/strong>: <a href=\"https:\/\/www.commercialsearch.com\/news\/why-retail-is-back-in-focus-for-investors\/\">Why Retail Is Back in Focus for Investors<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-cyan-bluish-gray-color has-alpha-channel-opacity has-cyan-bluish-gray-background-color has-background is-style-wide\"\/>\n\n\n\n<p>And it may be best&nbsp;to finance the components separately,&nbsp;notes&nbsp;John Marshall, senior director for capital markets at JLL.&nbsp;\u201cIf a parcel is divided into a shopping center and a multi-housing development, there is a wider debt market for discrete uses, which provides better options than a mixed-use execution,&#8221;&nbsp;he explained.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cTiming also rarely lines up, impacting interest costs, reserves and covenants, and the cost of capital is generally less when separating uses,\u201d Marshall added.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Forces driving mall evolution<\/strong><\/h2>\n\n\n\n<p>But financials are not the only impetus for mixed-use malls. Retail trends are also behind the push, and today it can be virtually impossible to keep a pure-play retail mall full.<\/p>\n\n\n\n<p>\u201cI think the biggest thing is, quite frankly, that most regional shopping centers are simply too large,\u201d said Platt. \u201cRetailers, communities and shoppers today are looking for a more varied experience, one more reflective of how they live right now.\u201d<\/p>\n\n\n\n<p>There\u2019s also population and employment migration and a desire by municipalities not to have a \u201czombie mall\u201d in their community, Latella noted.<\/p>\n\n\n\n<p>Empty anchor spaces are being replaced with a variety of uses, including entertainment concepts, sports and fitness facilities, community colleges, coworking spaces, offices, municipal service offices, post offices, food halls, museums and casinos.<\/p>\n\n\n\n<p>\u201cThe whole idea of putting in entertainment is to attract families and extend their visit\u2014eat, maybe see a movie and then shop,\u201d explained Latella.<\/p>\n\n\n\n<p>Expect more grocers and large tenants, like hypermarkets or a Target superstore, to locate in former mall department store footprints in the coming years, especially in dense markets, predicts Sarah Cafaro, senior director for the capital markets group net lease at <strong>Avison Young<\/strong>.<\/p>\n\n\n\n<p>Health care also is a big player in the transition of malls. Moorestown Mall in Southern New Jersey, for example, was a dying mall that was saved when Cooper University Healthcare replaced a Sears store with an outpatient services facility. Another example is The MarketPlace mall in Rochester, N.Y., where University of Rochester Medical Center filled almost the entire footprint of the mall with an ambulatory orthopedic outpatient and sports medicine campus.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Redevelopment challenges<\/strong><\/h2>\n\n\n\n<p>Redeveloping malls can be challenging, however. First, there must be consensus among all mall center partners and owners, like department stores that own their own parcels.<\/p>\n\n\n\n<p>Mall owners are limited in what changes can be made by what\u2019s in their reciprocal easement agreement, a legal agreement between mall property owners that lays out terms for maintaining and repairing common areas, easements and shared utilities. These documents commonly contain covenants that set forth accepted uses of the property, operating hours and limitations to the number or type of tenants that may enter the complex.<\/p>\n\n\n\n<p>\u201cRCAs can hamstring mall owners\u2019 plans to improve or modify space or redevelop the structure if anchor tenants deem the changes detrimental to their business,\u201d Cafaro said.<\/p>\n\n\n\n<p>Community opposition can also stall or stop projects altogether. Concerns often involve the impact on already overcrowded schools, as well as an increase in traffic. Traffic concerns, however, may be overcome with an understanding that mixing housing with retail and office reduces the number of car trips because work and everyday shopping needs are within a short walk for residents, Platt noted.<\/p>\n\n\n\n<p>Mall redevelopments also require navigation of entitlements and rezoning to allow a mix of housing with commercial uses. Platt finds that city leaders are generally agreeable to adding new uses, particularly housing, especially if the mall is in decline.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why older indoor shopping centers are the next live-work-play opportunity. <\/p>\n","protected":false},"author":3366,"featured_media":1004698594,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21783,21752,21742,21749,51037],"tags":[33022,52163,32799,32796],"class_list":["post-1004698351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-investment","category-mixed-use","category-latest","category-retail","category-trends","tag-avison-young","tag-centennial","tag-cushman-wakefield","tag-jll"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - 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