More than 600 million square feet of US retail space is classified as underperforming or at risk of closure. The commercial real estate industry has responded with creative repurposing strategies that are transforming former department stores and shopping malls into urgent care centers, college campuses, indoor farming facilities, and last-mile delivery sorting centers for e-commerce companies.
The transformation is creating new investment opportunities even as it signals structural changes in retail. Healthcare providers find former retail spaces attractive because of their plentiful parking, high visibility, and established access to suburban populations. Data center operators are eyeing large anchor spaces in markets with available power infrastructure. Local governments are encouraging residential conversions to address housing shortages.
