Retail is looking a little different these days in, especially in light of e-commerce and the most recent pandemic. With every change comes new opportunity, specifically in regional malls across the country.
The U.S. Census Bureau’s cumulative 2021 data and fourth quarter e-commerce sales data revealed an increase in sales. E-commerce sales rose 14.2% for a total of $870 billion in 2021.
Shoppers are driven by both convenience and safety. Due to these rising online sales paired with COVID-19, malls have seen a trend of increasing numbers of new medical and office users as tenants. This is the case for the Oaks Mall locally in Gainesville with the recent integration of three UF Health specialty practices.
UF Health The Oaks now occupies 139,000 square feet in the former Sears space. It is comprised of ophthalmology (eye specialties), otolaryngology (ear, nose and throat, including allergy), and audiology services. Their new facilities offer 87 exam rooms, 15 procedure rooms including laser rooms, eight treatment rooms and 10 sound booths across the three practices. This project took 14 months to complete. It opened January 2020.
Access to ample parking and the convenience to food and services for patients and patient caretakers are a few of many reasons behind this new trend. Patients can come for their procedure and immediately grab a bite to eat and shop for eyeglasses, contact lenses and hearing aids just steps away from their doctor’s office, all without having to move their car.
The opportunities do not end there, either. Future integration of governmental services, childcare, housing, fitness, even gaming facilities, casinos and other conveniences offer opportunities for true new urbanism to flourish.
Support for local entrepreneurs and merchants also exists, as is the case with Emporium Square Artisan Market in Middletown New York. This “micro-mall” of creators and vendors under one roof launched last August. The Market of around 50 merchants offers a one-of-a-kind retail and food experience, allowing consumers to connect directly with makers and their goods firsthand.
Regional Malls are becoming points of destination, offering a dynamic tenant mix. They include restaurants, technology and science users, among other service and retail providers.
University Mall in Tampa is currently under renovation. It will soon include a mixed-use urban neighborhood development with an integrated residential component. New institutional and education users also fill some of this former retail vacancy. Austin Community College recently transformed a former big box J.C. Penney into a contemporary 32,000-square-foot, open-plan learning lab.
Malls now represent an opportunity to redefine traditional retail, with a focus on consumer interaction and experience. Traditional malls should be seen through a new lens. Transforming these sites into new community centers or hubs will further evolve regional landscapes and, potentially, quality of life.
Although retail users will never fully vacate malls, reimagining the regional mall is currently restructuring commercial real estate in Greater Gainesville as we know it.
By Brian Oen
Brian Oen is a commerical agent with Better Homes and Gardens Real Estate Thomas Group.