Crest Development, The Chosen Leader In Retail Construction Companies For New Jersey, Sees New Innovations for Shopping Malls
Over the years, shopping malls have been a staple of American society, and for many years, they have been centers of attraction for retail consumers all over the country. However, as times change, malls have found themselves struggling to maintain their allure as consumer preferences shift from physical to online shopping. In the wake of this trend, developers have begun repurposing these once-lively shopping centers to preserve their value in the market. As we move forward, the future of shopping malls lies in mixed-use developments, data centers, and warehouses. Crest Development, a leader in retail construction companies for New Jersey, discusses how the new real estate opportunities for businesses may be in the local shopping mall.
One of the most popular ways shopping malls are being repurposed is through mixed-use development. These are developments that combine multiple types of properties within a single project. A classic example of this is the conversion of malls into residential property, office space, and other commercial applications. Mixed-use development seeks to bring different aspects of city life under a single roof, thus creating an attractive environment for people to live, work, and play.
The benefits of mixed-use developments are numerous. They reduce vehicle miles traveled, create jobs, increase walkability, and provide affordable housing options, among other things. Because of the numerous benefits, developers and urban planners are pushing for more mixed-use developments around the country. From a financial standpoint, developing a mixed-use complex in a former shopping mall can be expensive. Still, the unique community benefits make it attractive to developers, investors, and tenants alike.
Another repurposing strategy that is gaining popularity is the conversion of shopping malls into data centers. With the world becoming increasingly reliant on newer and newer technology, the need for data centers has increased. Business data centers house IT and computer systems, such as telecommunications and server equipment storage.
In the past, retailers relied on malls as a way to connect with customers, but now, online stores have replaced physical retailers in many ways. To meet this increased data demand, converting a shopping mall into a data center is a logical next step. Repurposing a former shopping mall into a data center has several advantages. Malls typically have ample space that can easily be transformed into server rooms, network closets, and more. The infrastructure is already in place, and there’s often flexibility in building configuration, which makes it perfect for data centers.
Finally, another popular use for shopping malls is as warehouses. Warehouses are essential components in the logistics industry, and as e-commerce continues to grow, more and more companies are seeking large, flexible warehouse facilities for storing their goods. Here, the large footprint of shopping malls allows the creation of cavernous fulfillment centers for e-commerce companies to operate from.
Malls provide ample space for storing goods, with large parking lots for delivery trucks. When an e-commerce company converts a shopping mall into a warehouse, it can also take advantage of existing infrastructure such as the electrical supply, HVAC, elevators, and more. Because of this, it can be less expensive to put up a warehouse in an existing mall than to build one from scratch.
Investing in Retail Space
The repurposing of shopping malls offers exciting opportunities for developers and investors alike. For those looking to invest in real estate or retail space, getting on board with the trend could be the next hot investment. With markets shifting away from traditional retailers and malls, transitioning to mixed-use complexes, data centers, and warehouses presents a unique opportunity to contribute to the community while making money in the long run.
Legendary Utah real estate developer Stan Perkins, speaking on the future of shopping malls and retail space, suggests that potential investors should look for malls that still have “good anchors,” meaning high-end tenant mixes repositioning into powerful, multi-use centers that can adapt to their surroundings – not just in regards to shopping but also their relationship to the community through health, wellness, housing, and entertainment.
Crest Development, Innovative Leader In Retail Construction Companies For New Jersey and The Tri-State Area
Repurposing shopping malls can seem like a daunting task, but in the end, it’s worth it. Developers and investors who embrace this new trend can breathe new life into tired, underused properties and create vibrant, thriving communities. By focusing on mixed-use complexes, data centers, and warehouses, malls can become valuable assets attractive to a wide range of tenants and communities. As the saying goes, “The only constant in life is change.” The new uses for shopping malls in this rapidly changing world are a testament to this because everyone can win with the right mindset: the original stakeholders, the tenants, and the greater community.
Ready to get creative with a retail space or shopping mall in your list of properties? Contact Us Now or Call Us at (973) 777-0001.