With the rise of e-commerce and changing consumer behaviors, many traditional ‘brick and mortar’ properties have struggled to remain viable. But rather than letting these underperforming spaces sit vacant, innovative developers across the country are leading the charge to reimagine these properties as healthcare facilities, education centers, and residential units (among other novel uses). This widespread trend – known as adaptive reuse – is reshaping many retail properties, driving economic revitalization, and delivering substantial social benefits.
Once seen as symbols of consumerism, many underperforming malls and big-box stores are today recognized as assets that can address critical societal needs. Adaptive reuse has proven to be a creative and sustainable solution to declining retail demand, offering ways to breathe new life into these spaces while saving costs and reducing environmental waste compared to demolishing and rebuilding.
One of the most notable trends is the transformation of former retail properties into healthcare facilities. Retail locations often offer strategic benefits for healthcare providers: ample parking, proximity to population centers, and large, flexible interiors.
A prime example is the former Macy’s store at Alexandria Mall in Louisiana, now reimagined as a regional medical center. This adaptive reuse project provides essential healthcare services and revitalizes the mall, driving foot traffic to surrounding businesses. Similarly, Vanderbilt University Medical Center in Tennessee converted part of a former shopping center into a comprehensive healthcare facility, meeting community health needs while reducing the strain on nearby hospitals.
Retail spaces also are being reimagined as educational institutions and training centers. How do they achieve this? By leveraging the accessibility and scale of retail properties to accommodate students and staff. In Cleveland, Ohio, the Richmond Town Square Mall is being redeveloped into Belle Oaks Marketplace, which will include a school campus alongside residential and commercial spaces. This multi-use approach is designed to create a vibrant, community-focused environment.
Another example is the adaptive reuse of a former Sears store in Memphis, Tennessee, into Crosstown Concourse. This mixed-use facility now houses a high school, office spaces, and arts-focused organizations, becoming a hub of education and creativity that serves the local community.
In cities grappling with housing shortages, retail-to-residential conversions are offering a lifeline. These projects take advantage of the spacious layouts of malls and department stores to create high-density housing.
The Dead Mall Apartments project in Austin, Texas, is a leading example. This redevelopment of a defunct shopping mall into affordable housing units is helping address the city’s growing housing demand while integrating green spaces and communal areas. These initiatives not only provide much-needed homes but also attract new residents to formerly declining neighborhoods.
The adaptive reuse of retail spaces brings significant economic and social advantages. By repurposing existing structures, developers can save on construction costs and reduce environmental waste. These projects create jobs, stimulate local economies, and enhance property values in surrounding areas. On a social level, too, these transformations address critical gaps in healthcare, education, and housing, making communities more resilient and sustainable.
Adaptive reuse is transforming the commercial real estate market, turning underperforming retail properties into community assets. From healthcare facilities to education hubs and residential units, these creative conversions highlight the potential of innovation and sustainability in addressing modern challenges. As more projects emerge across the country, adaptive reuse will continue to redefine how we think about retail spaces, creating a brighter future for communities nationwide.
