Malls have always been public spaces, often bustling with people at peak hours. Unfortunately, COVID-19 stopped this entertainment; the lockdowns and social distance mandate enforcing closures. Businesses slowly started returning in-store last year, resulting in mall reopening. However, numbers for malls in some regions are disappointing, pushing investors to consider mall repurposing.

The recovery statistics are relatively strange. Footfall increased after February 2021 (9.31%) until peaking in July 2021 (43.85%). It then reduced to 14.82% in January 2022 before picking back up and reaching 34.4% in March 2022.

The instability within national statistics is due to the unequal recovery across states. Some malls have outperformed their pre-pandemic performance by increasing in-store sales by 13.7%. A few others have been unable to achieve the same results, and it is becoming too expensive to continue operating them.

Hence, the best solution is to repurpose them into revenue-generating commercial real estate.

Mall Repurposing Ideas for Commercial Real Estate Investors

The term mall repurposing isn’t as simple as it appears. Converting the mall into an additional revenue-generating property type requires planning and investment. The good news is that successfully getting the funds and approvals can help make your property profitable.

Following are the top ideas for mall repurposing that have the highest potential for success:

1. Indoor Vertical Farms

Vertical farming is an alternative and sustainable approach that optimizes space and can produce crops all year round without the heavy use of chemicals. Governments are considering investing in them to make food production more sustainable, which is a lucrative opportunity.

Consider remodeling the building to make it suitable as an indoor farm and rent it to experts willing to establish large-scale vertical farms. It will be beneficial and help you earn a sustainable income.

2. Data Centers

The technological advancement and increase in digitization have resulted in a significant rise in demand for data centers. The problem is that data centers have specific ventilation and security requirement that regular properties cannot always meet.

However, malls are designed to optimize ventilation and energy distribution, making them the perfect place for the job. So, start renovations and enter partnerships with businesses willing to rent data centers from third parties.

It is a highly profitable direction and an excellent alternative.

3. Multifamily Residences

Your mall may have been a commercial, public place, but it has the makings of an attractive multifamily property. You’ll need extensive remodeling to convert outlet space into equal-sized apartments for customers.

Add in some warm, homely, aesthetic, and enjoyable common areas, and you have the perfect residential property ready for renting.

Final Thoughts

In short, there is no need for concern if your mall investment isn’t recovering despite people returning to pre-pandemic shopping norms. Mall repurposing will help you convert the property into a revenue-generating source in no time!

Don’t hesitate to contact the CHRE team for advice regarding this development. We have been in the industry for several years and will use trends and insights to make optimal suggestions.