Massive Changes For The Future of Malls
Failing malls are turning into prime condo real estate projects. With the high number of store closures, it’s the most beneficial way to keep revenues up for property owners. This might mean massive changes for department stores. Canadian mall owners seek to capitalize on a supply-constrained housing market while minimizing their vulnerability to the struggling retail market. They are creating new mixed spaces, with specialty stores, restaurants, and residential units. According to RioCan REIT, Canada’s largest property trust, this will create lively, well-located neighborhoods as well as foster a community and ensure safer spaces. “The population is growing and there’s no real land left in Canada’s biggest cities,” states RioCan Chief Executive Ed Sonshine. “Demand for retail space isn’t growing…it makes perfect sense on so many levels.”
According to the Financial Post, developers, such as RioCan REIT and the property units of some Canadian pension funds, are turning major lands that have not been put to best use historically into housing in one of the world’s priciest, supply-constrained residential markets. This includes lands containing parking lots and low-rise retail stores.
Source: Financial Post
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