The American mall, once a symbol of suburban sprawl, is undergoing a radical transformation. Facing declining retail sales and a surge in online shopping, developers are creatively repurposing vast vacant spaces left behind by shuttered department stores like Macy’s and JCPenney. This reinvention is bringing a surprising new trend: **residences within the mall itself**, changing how we think about urban living and shopping centers.
Key Takeaways: The Mall’s Makeover
- Dying department stores are making way for apartments: Empty retail spaces are being converted into housing, addressing a national housing shortage and breathing new life into struggling malls.
- A new “live, work, play” model: Malls are evolving to offer residential spaces alongside retail and leisure options, creating self-contained communities.
- Convenience is key: Living at the mall offers unprecedented convenience, with shops, restaurants, and amenities within walking distance.
- Challenges remain: High construction costs, complex zoning regulations, and the unique architectural challenges of repurposing retail spaces pose hurdles for developers.
- Early adopters are seeing success: While still a nascent trend, several successful mall-to-housing conversions showcase the viability of this innovative model.
The Decline of Traditional Malls and the Rise of Mixed-Use Development
The American retail landscape has undergone a dramatic shift. The rise of **e-commerce giants** like Amazon has significantly impacted brick-and-mortar stores, leading to the closure of numerous department stores. This has left many malls with vacant anchor stores, significantly impacting their profitability and viability. “**There’s just too much retail in the U.S.,**” notes Oscar Parra, principal of Pacific Retail Capital Partners’ Special Situations Group, highlighting the oversaturation of the market. “**It’s like four times higher than any other nation…I don’t know of a market that needs a million square foot mall.**”
The traditional model, heavily reliant on anchor department stores, is no longer sustainable. Developers are actively seeking innovative solutions to revitalize these spaces and prevent further decline. Converting these large, available areas into residential units is proving to be an effective and profitable solution.
Repurposing Spaces: Beyond Housing
While apartment complexes are the most prominent trend, malls are seeing a diverse range of repurposing projects. Amazon distribution centers, pickleball courts, and even an NHL training facility have replaced big-box stores in some locations. However, the growing need for housing in the U.S., estimated to be a deficit of 4.5 million homes, has fueled the rapid growth of residential development within mall spaces. As of January 2022, at least **192 U.S. malls planned to add housing**, and at least **33 had already constructed apartments** since the pandemic, according to Realogic, a real estate consulting firm. This trend is spreading nationally, with projects underway in California, Florida, Arizona, and Texas.
What it’s Like to Live at the Mall
While the concept of “living at the mall” might seem unusual, several projects are showcasing the unique benefits and challenges of this living arrangement. The Lafayette Square Mall in Indianapolis, for example, is scheduled to open 1,200 apartment units, including affordable housing, in a former Sears building in 2025. The Paradise Valley Mall in Phoenix has already opened 400 luxury units. Many more are appearing.
Case Studies: Existing Mall Housing Projects
The Arcade in Providence, Rhode Island, provides a compelling example. This oldest indoor shopping mall in the country, once vacant after the Great Recession, now houses 48 micro units built on its upper floors. Amy Henion, a graphic designer living there, states, “**It’s cool to be part of such a historic building…If I want to get my hair cut, I can walk downstairs…If I want to pick up lunch, I don’t even have to leave the building.**” This highlights the convenience aspect, a major draw for residents.
Similarly, the Grand Avenue Mall in Milwaukee has undergone a significant renovation. John Borchardt, a resident, describes the transformation, “**Where our apartment unit is was like the weight room of the YMCA and our hallway…used to be the track.**” He also appreciates the convenience of nearby stores like TJ Maxx and Foot Locker, adding that the mall’s environment is “**very dog friendly.**” He emphasizes the convenience of the new food court, with its convenience offset only slightly by the temptation to indulge too easily.
Challenges and Considerations
Despite its appeal, mall conversions face challenges. High construction costs are a significant barrier. Furthermore, developers must navigate complex zoning laws and potentially challenging lease agreements. The architecture of malls, particularly the layout of former department stores, also presents difficulties. Effective utilization of space to maximize natural light and ventilation is a notable design challenge. As Parra points out, “**What we’ve learned is it’s better to disconnect it from the mall…tear the box down…and then create a little bit of a buffer between the mall and the [apartment building].**”
The Future of Living at the Mall
The concept of “living at the mall” is still evolving. The integration of residential spaces into malls is not just about providing housing; it’s about creating vibrant, self-contained communities. This new model merges residential, retail, and leisure elements which offers a unique living experience.
Najla Kayyem, Pacific Retail’s executive vice president of marketing, envisions a future where living at the mall is a more seamless experience, “**It’s really services and amenities based…creating convenience for residents…so that they don’t have to leave.**”She envisions a future akin to a resort experience where purchases are integrated into a tenant account: “**Ideally you’re living somewhere and you have an account, and you can shop and dine…and buy things on your account. That would be real, true, seamless integration.”**
In conclusion, the transformation of American malls into mixed-use developments represents a significant shift in urban planning and retail strategies. While challenges remain, the initial successes of mall-to-housing conversions, coupled with the increasing need for housing and the repurposing of vacant retail space, suggest that “living at the mall” might soon become a more commonplace reality.
