Why Malls Should Add Residential To Their Repurposing Plans
The retail apocalypse has not been kind to malls. Credit Suisse recently studied the state of mall-based retail and predicted that that about one-fourth of the nation’s 1,100 shopping malls — or roughly 220 to 275 shopping centers — will close by 2022. This is largely credited to the shift toward online shopping, which the bank predicts to capture upwards of 35% of consumers’ spend by 2030 and the resulting raft of brick-and-mortar store closures, that will reach 8,600 this year and more are expected to follow next year. The traditional concept of a mall as a grand hall for shopping is becoming “a historical anachronism” desperately in need of reinvention, says Rick Caruso, CEO of retail developer Caruso Affiliated, which is responsible for the trend-setting LA-based The Grove at Farmers Market that offers outdoor retail, food, and entertainment centers. Mall owners aren’t sitting idly by though, as they push the traditional mall’s boundaries beyond retail to create community centers that become destinations where guests can meet, eat, be entertained, and shop, if they feel so inclined. The new buzz word in the mall industry is “reuse” or “remix” where old retail spaces are made over for new, more relevant uses for today’s consumer culture. Read more at Forbes.
