Today : Dec 11, 2024
Real Estate
05 December 2024

Malls Transforming Into Urban Living Spaces

Developers repurpose traditional malls to tackle housing shortages and boost communities

Across North America, shopping malls, once vibrant centers of retail, are undergoing significant transformations as developers pivot to address the nationwide housing crisis. A notable example is occurring at the Eastgate Square Mall located at 75 Centennial Parkway North, Hamilton, Ontario, where plans have been set forth to create 19 new residential towers alongside the existing retail space.

The redevelopment signifies more than just architectural upgrades; it reflects shifting societal patterns, especially post-pandemic, where urban living is becoming increasingly desirable. Harrison Equity Partners has initiated this ambitious project, aiming to replace the extensive surface parking areas and the Hamilton Street Railway (HSR) bus terminal with over 4,325 residential units, all under the crafting of BDP Quadrangle architects.

According to the project description, the developers envision "a new revitalized retail destination and vibrant residential community," marking this as Hamilton's first transit-oriented community. This designation implies accessibility to public transport, allowing residents to engage with both their work and leisure activities without relying solely on personal vehicles.

Originally, plans for this site included towers soaring up to 42 stories, but community feedback and administrative pushbacks necessitated adjustments. The redesign has now streamlined the idea to include towers ranging from 16 to 20 stories, stabilizing heights below local zoning laws without complicated rezoning efforts.

Interestingly, even with the change in design, the proposed density of the development remains substantial, encompassing around 9,500 square meters of retail space alongside the new residential units and enhancing the availability of community facilities, like a dedicated community center measuring over 3,400 square meters.

One notable aspect of this redevelopment is its focus on green spaces, with plans to establish 9,700 square meters of green areas spread across three separate blocks. Such features aim to promote outdoor activities and community interactions, transforming what was once principally a retail environment.

An important observation from developers is the realization of the need for ample parking, with proposals indicating up to 3,481 parking spaces. This decision has raised eyebrows among urban planners who advocate for reduced car dependency within transit-oriented designs. Critics argue this reinforces car culture rather than encouraging public transportation use, which the project purports to support.

While Hamilton sees itself hanging onto old retail models, other regions, particularly the United States, are adopting drastic measures to adapt shopping malls to contemporary living needs. A shift is evident there with real estate developers demolishing traditional anchor stores like Macy’s and JCPenney to make way for new housing developments. By January 2022, it was reported by Realogic, a real estate consulting firm, at least 192 malls had affirmed plans to add housing, with 33 projects completed since the pandemic.

This trend isn’t merely about making space for residential units but is seen as beneficial for both communities and businesses remaining within shopping centers. The added residential units create built-in customer bases, encouraging traffic to remaining retail and restaurant venues.

Real estate experts like Oscar Parra from Pacific Retail Capital Partners highlight the abundant underutilized retail space across the country, calling for inventive, forward-thinking uses of such properties. He mentions projects at malls like Westfield's Garden State Plaza exploring the inclusion of housing rather than additional retail outlets, signifying the changing strategic priorities of property owners.

Despite these progressive steps, significant hurdles remain. Developers face high construction costs and complex zoning laws, preventing smooth transitions from retail to residential models. The challenge lies not only in the physical conversion of buildings, which demand radical changes for proper ventilation and natural light to apartments but also involves careful navigation of pre-existing lease agreements and municipal regulations.

From the perspective of current residents of malls-turned-apartments, the experience can be quite unique. For example, at Lafayette Square Mall in Indianapolis, plans for 1,200 apartment units, including affordable housing, are set to materialize by 2025. Meanwhile, Phoenix's Paradise Valley Mall recently opened 400 luxury units, tapping directly the growing affinity for living conveniently close to shopping and dining.

The Arcade, the oldest indoor shopping mall in the U.S., located in Providence, Rhode Island, has seen revival through conversion efforts focusing on accessibility and integration with the community’s fabric. Developers transformed vacant shop spaces on the upper levels of the Arcade to create living quarters, preserving its historic features and granting residents easy access to varied amenities.

Among the numerous transformative stories, the Grand Avenue Mall's redevelopment also stands out, offering its residents amenities such as pickleball courts and wellness centers, indicative of modern lifestyle desires. Former vacancies have turned residential units, creating hybrid spaces where living functions seamlessly integrate with leisure and shopping arenas.

John Borchardt, who resides at the revamped Grand Avenue Mall, explains the allure of easily accessible shopping alongside his home, illustrating the practical benefits of living at these reimagined spaces. He shares amusing aspects of the lifestyle, like his dog being adored by other residents and enjoying the novelty of being able to mall-walk during inclement weather.

Contrasts arise, such as when residents disclose privacy challenges linked to living adjacent to retail areas, yet the overall consensus aligns with the lifestyle's unique appeal—an intersection where convenience, community, and contemporary living converge.

These insightful transitions reflect broader changes within urban development paradigms, where conventional retail spaces are metamorphosed to accommodate the housing needs of burgeoning populations, helping mitigate housing shortages exacerbated by recent economic pressures. Malls, once fading relics, now play pivotal roles providing residential solutions and revitalizing urban centers across North America.

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