Malls Evolving
For decades, shopping malls were the centerpiece of American suburban life—where families shopped, teens socialized, and communities gathered. But with the decline of major department stores like Sears, JCPenney, and Macy’s, malls across the U.S. have faced shuttered storefronts and desolate parking lots. Now, a new chapter is unfolding: the transformation of these sprawling complexes into mixed-use hubs that include residential housing.
The Rise of Mall-to-Housing Conversions
As of January 2022, at least 192 malls in the U.S. had plans to integrate housing into their footprints. Real estate developers are increasingly converting underused retail spaces into apartment complexes, condos, and even entire neighborhoods. At Flatiron Crossing Mall in Broomfield, Colorado, for example, developer Macerich is pioneering a community-style redevelopment with housing and green space where once there were retail anchors.
Similarly, in Providence, Rhode Island, the Arcade Mall—a historic shopping arcade—has been transformed into a mixed-use facility, with micro-apartments on the upper floors and small retail units below. Residents now live in what was once one of America’s first enclosed malls, blending history with modern urban living.
Shifting Foot Traffic and Retail Habits
While traditional enclosed malls have struggled, foot traffic to strip malls—those open-air clusters of stores often anchored by grocery chains or pharmacies—has been booming. According to the International Council of Shopping Centers, Americans make around 1.3 billion visits to shopping centers each month, with strip malls leading the way thanks to their convenience and accessibility.
The U.S. now hosts over 68,000 strip malls nationwide. This retail format is emerging as a durable alternative to enclosed malls, especially for essential and everyday services. With easier parking, outdoor entrances, and proximity to residential neighborhoods, strip centers are poised to play a larger role in the future of retail.
Gen Z and the Mall Renaissance
Despite the closures and downturns, American malls are experiencing a resurgence, partly driven by Generation Z. These digital natives, born between 1997 and 2012, are showing a surprising affinity for brick-and-mortar stores. Their shopping habits mirror those of their grandparents, with many preferring in-person retail experiences over digital ones.
Top mall destinations for Gen Z shoppers include classic department stores like Macy’s and JCPenney, as well as modern lifestyle brands such as Abercrombie, Express, and Apple. At the Freehold Raceway Mall in New Jersey, mall operators report growing crowds of younger shoppers, suggesting a generational shift that could help breathe new life into struggling malls.
Beyond Shopping: Dining and Experience Are Key
Today’s successful malls are evolving into lifestyle centers that focus on experiences rather than just shopping. High-end malls are thriving, in part due to their expanded dining options. Yelp reports that 17 of the top 25 drivers of mall traffic are restaurants, signaling a pivot from traditional food courts toward more diverse culinary offerings.
Chains like McDonald’s and Panda Express are being joined—or even replaced—by chef-driven eateries, boutique coffee shops, and international cuisine. This emphasis on dining transforms the mall into a destination not just for shopping, but for socializing and entertainment.
The Future of Malls
As malls continue to adapt, the trend toward mixed-use developments that include housing, retail, and recreation reflects broader shifts in how Americans live, work, and shop. No longer just a place to buy clothes or grab a pretzel, the mall of the future might also be where you live, work remotely, or meet friends for dinner.
This reimagining of the American mall—fueled by innovative real estate strategies and a new generation of consumers—may ensure its relevance for decades to come.
