Shopping Malls Changing the Housing Landscape

Could shopping malls transform the Canadian housing landscape? Believe it or not, this has become a growing subject of discussion among a wide array of real estate experts, officials, and housing advocates.

Indeed, shopping malls could have a tangible impact on the Canadian real estate market. With the meteoric growth in e-commerce and the prevalence of professionals working from home, shopping malls have been taking a noticeable hit in recent years. Suffice it to say; consumers are no longer hopping in their automobiles and driving to the suburbs to visit their favourite malls.

As a result, shopping malls face several challenges, including store closures, reduced foot traffic, and reduced in-store sales.

Shopping Malls Changing the Housing Landscape?

So, how exactly are shopping malls changing the nation’s real estate landscape? The latest trends have forced commercial property owners to pivot, coming up with various creative solutions. One of these strategists has been to repurpose these vast spaces converted into condominiums or erect condos on top of parking lots.

It makes sense, too. As in-store retail diminishes amid online retail growth and corporations embrace telecommuting policies, it is logical to repurpose these large spaces and utilize them for housing. This allows developers to make efficient use of the large plots and can be especially useful in areas where space is limited and demand for residential housing is high.

To adapt to these changing circumstances, some mall owners and developers are exploring alternative uses for these spaces and revamping them into mixed-use developments.

For example, some malls are repurposing some portion of the property into residential units. Others are integrating housing components into existing mall structures. By doing so, developers aim to create communities that offer easy access to amenities, entertainment and shopping. This restructuring also opens the path to increased demand for mixed-use living spaces.

By adopting this measure, property owners can breathe new life into commercial areas, offering a built-in customer base with convenient offerings for nearby residents and helping create more much-needed residential units. Remember, most shopping malls are located in prime urban locations, converting them into mixed-use spaces with both a residential and a retail component that can help facilitate redevelopment efforts and help overcome the problem of declining or under-utilized areas.

Industry experts assert that this changing landscape of housing and shopping malls is also in line with the changing dynamic of today’s younger generation: The live-work-play concept where people can work, live, dine, and enjoy recreational activities all in one space.

Market analysts argue that this can be a real benefit to real estate benefits since diversifying and changing the landscape of shopping malls by incorporating housing can assist in reducing their dependence on retail and more easily manage fluctuating market trends and economic changes. It seems logical to utilize existing structures instead of constructing new housing schemes from scratch.

Can Housing and Shopping Co-Exist?

But what about developments that combine both housing and shopping?

This is another change that is expected to continue in the years to come. Shopping malls will persist in repurposing and redeveloping because consumer preferences will likely switch to even more online shopping, and manufacturing mixed-use spaces makes sense for development.

By changing the housing landscape, shopping malls can make efforts to provide consumers with unique experiences they cannot get through online shopping.

For example, pop-up stores, community events, interactive displays, and the use of immersive technology can turn consumer attention back to in-store shopping. In the coming years, it is also possible that shopping malls will become hybrid, with both physical retail and e-commerce elements. This could mean they might offer click-and-collect services, integrate personalized and digital shopping experiences and work towards bridging the gap between online shopping and in-store retail. Technology is not limited to online services.

Shopping malls can also become more dynamic to bring back consumers by improving the overall shopping experience. This could be done through smart parking systems, personalized recommendations, mobile apps for navigation in the mall, contactless payment options and other similar services.

Such a monumental transformation in the housing landscape can enable shopping malls to focus on community and lifestyle by mixing retail, entertainment, dining, wellness, and co-working spaces.

This changing trend is good for the environment, according to market experts. Green initiatives can be incorporated into this restructuring, and more eco-friendly design elements and energy-efficient systems can be incorporated when this type of redevelopment occurs.

In the end, there is a significant shift that involves repurposing commercial office space into residential units, with half of real estate markets planning to or already in the middle of converting these places into places to live.