The COVID-19 pandemic has dealt a serious blow to many shopping malls, as customers turn to online retailers.
Owners may look to redevelopment if these retail centers fail. Converting malls to fulfillment centers, apartment complexes, schools or medical offices may give the properties new life—but at a cost.
One analyst says that such strategies could reduce property values anywhere from 60% to 90%. A mixed-use development may offer better recovery values.
A mixed-use development takes extensive planning and capital, though. Ten years is a common length of time from inception to completion.
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