By Anthony Migliore, Senior Advisor
America's retail industry has been in a state of flux for years, with the rise of e-commerce and changing consumer habits leading to the decline of traditional brick-and-mortar stores. As a result, many shopping malls across the country have become outdated and are struggling to attract tenants and shoppers. However, there is hope for these aging malls through the process of adaptive reuse.
Adaptive reuse refers to the process of repurposing an existing building or site for a new use. In the context of commercial real estate, adaptive reuse involves converting a mall or other retail property into a different type of space, such as office space, residential units, or mixed-use developments.
The benefits of adaptive reuse for aging malls are numerous. First and foremost, it can breathe new life into a property that might otherwise become obsolete. By repurposing a mall into a new type of space, developers can bring in new tenants and create a more vibrant and diverse community. This can help to attract new businesses and residents to the area, which can in turn lead to further investment and economic growth.
Another benefit of adaptive reuse is that it can be more environmentally sustainable than building new structures from scratch. By repurposing existing buildings, developers can reduce the amount of energy and resources required to construct new buildings, which can help to reduce carbon emissions and other environmental impacts.
In addition to the technical aspects, it's important to consider the community's needs and desires when repurposing a mall. For example, adding community spaces such as a public library or a park can be beneficial to the surrounding area.
Repurposing a mall into an apartment building, as an example, requires a different approach than traditional apartment building construction. The open floor plans of a mall can allow for more flexible apartment layouts, but the plumbing and electrical systems will need to be reworked to accommodate residential use.
One example of successful adaptive reuse of a mall is the former Westside Pavilion mall in Los Angeles. The mall was purchased by Google in 2018 and is currently being converted into a new office campus. The project will involve renovating the existing buildings and adding new structures, with a focus on sustainable design features such as solar panels and green roofs.
Another example of successful adaptive reuse is the transformation of the Regency Square Mall here in Jacksonville, Florida. This mall, which was once a popular shopping destination, fell into disuse as online shopping became more prevalent. However, in 2021, the mall was purchased by a development group with plans to turn it into a mixed-use development featuring office space, retail space, and affordable housing. This project will provide much-needed housing options in the area while also revitalizing the mall and bringing new business to the community.
The Orange Blossom Mall, located in Ft. Pierce, Florida, is another adaptive reuse success story. The former shopping center was transformed into a business park offering education services, flex and office space, and retail shops. Prime Rock Energy Capital, the developer that led the redevelopment effort, bought approximately 26 acres of the mall's property for $11 million in July of 2021. The 39-acre site was renamed the Renaissance Business Park and created 600 jobs. According to Michael O'Neill, the principal of Prime Rock Energy Capital, the site is quite large, spanning approximately five city blocks, which allows for a flexible combination of different spaces.
But adaptive reuse is not without its challenges. One of the main challenges is the need for significant renovations and upgrades to the existing buildings to make them suitable for their new use. This can be expensive and time-consuming, and may require significant changes to the building's layout and infrastructure.
Additionally, zoning and land use regulations can be a barrier to adaptive reuse in some areas. Some municipalities may have restrictions on what types of buildings can be converted into certain uses, or may require lengthy approval processes for changes in land use.
Despite these challenges, adaptive reuse remains a promising option for developers and investors looking to revitalize aging malls and other commercial properties. By leveraging existing buildings and infrastructure, developers can create new opportunities for growth and development while minimizing environmental impacts.
Q&A
Q: What are some common types of adaptive reuse for aging malls?
A: Some common types of adaptive reuse for aging malls include office space, residential units, mixed-use developments, industrial, and entertainment venues such as movie theaters or bowling alleys.
Q: What are some of the challenges associated with adaptive reuse?
A: Challenges with adaptive reuse can include the need for significant renovations and upgrades to existing buildings, zoning and land use regulations, and potential difficulties in attracting new tenants or buyers to the repurposed property.
Q: How can adaptive reuse be more environmentally sustainable than building new structures from scratch?
A: Adaptive reuse can be more sustainable because it avoids the need to demolish existing buildings and construct new ones, which requires a significant amount of energy and resources. By repurposing existing buildings, developers can reduce carbon emissions and other environmental impacts associated with new construction.
