As we approach the holiday season still in the midst of a pandemic the future of retail remains very uncertain. By estimates, up to 25% of American’s over 1,100 malls are expected to shut down due to COVID-19 combined with the ongoing move to online shopping over the next 5 years (according to Coresight Research). Across the country property owners are looking at creative ways to utilize these properties. With the high demand for warehouse/last-mile distribution space, many are considering the conversion of closed or underperforming malls to warehouse/distribution space. 

In theory, this adjustment could make sense, malls provide large open space, have ample parking and many are well located near highways. There are however several other considerations of importance for these potential conversions. First, physical barriers, in particular, the high ceiling heights often needed for warehouse facilities. 40-foot ceiling heights are a common requirement for warehouse or last-mile facilities but these heights are not readily available in a former retail space. Issues of zoning can also come into play as many towns may not be ready to rezone a commercial area to industrial. Retail property owners considering conversions should consult with an experienced design-builder, like Senate Construction, on the potential of their existing asset.

Locally there are several projects involving the redevelopment of mall properties, some to distribution, others to the also popular mixed-use destinations to look toward as examples. 

Greendale Mall, Worcester  - Recently submitted plans by Finard Properties call for the demolition of this mall, originally constructed in 1987. The developer would then construct a new 121,000 square foot warehouse and distribution center on the site.  

Woburn Village - Under construction now this, 23-acre site is being converted to include both residential and retail uses. Portions of the former mall were demolished while the Roche Brothers grocery store remains open on the site. Along with updated retail space including a new movie theater, the project will also include the new Avalon Woburn apartments. This multifamily project will bring 350 units to the site along with a host of amenities to attract residents including a fitness center, pool, and coworking space.

100 Mazzeo Drive, Randolph  - This 86,564 1-story retail building sits just off Route 24 less than 20 miles from Boston. Atlantic Management purchased the property in June for $10M and is now working to convert the former retail space to a “last mile” distribution center. 

Hanover Mall - The redevelopment of the Hanover Mall is currently underway with the site set to be transformed into a mixed-use location that combines an open-air retail experience with 297 high-end residential units to form an amenities-rich “Live, Work, Play” destination experience.

Arsenal Yards, Watertown - One of the most notable conversions locally, this multi-phased redevelopment and expansion of the former Arsenal Mall features not only retail space, but 300 residences, a 145 room hotel, and in a future phase new lab/office space. This massive project includes the restoration of 2 historic buildings and the construction of 5 new buildings. Located just outside Boston and featuring access to the Charles River, this project offers a study in placemaking on a large scale.