It seems like repurposing is fast becoming a popular term among real estate developers and investors. We are seeing more activity involving existing structures such as turning office buildings into housing. The trend began due to an increase in unused office space combined with the need for more housing in some cities. Another example may be what to do with large spaces which were once thriving shopping malls and a commercial real estate hub for the communities they served.
In recent years, some are being converted to residential or mixed use complexes. They come with central locations, easy access, and space for parking and multiple structures. What makes this interesting is that entities which are interested in creating long-term real estate opportunities from former malls are no longer only real estate developers and investors. They are now pro sports franchise owners.
There are already examples in multiple cities, some as large as Chicago, where a billion dollar development is underway adjacent to the United Center, and Los Angeles, where the home of the Lakers and Kings is now surrounded by restaurants, retail, and residential. In the Dallas-Ft. Worth Metroplex, we now see (per the below linked article) that ownership of the Dallas Stars and Dallas Mavericks are each pursuing creating mixed use complexes out of closed shopping malls. What makes it more interesting is that each team has separate ownership, although they currently share the same arena for their games. They are also pursuing separate locations for similar projects within the same region.
From our viewpoint, the significance is high for a number of reasons. The first reason is that these billion dollar enterprises see the value of involvement in commercial real estate for the long-term. Having years of established presence in the community adds to their credibility and recognition, which helps when breaking into a venture they are not collectively highly experienced in.
The reason I find this interesting is because of how it should inspire valued clients and connections. It is proof positive that a large real estate investment does not always come from an accredited investor or an entity with an established presence in the market for what they are acquiring. Here we have pro sports franchises looking into acquiring mall space.
Somewhere within those entities, somebody started with an idea to consider pursuing a project of this magnitude and how it could fit into their growth and expansion. Because somebody started with the idea, everyone from developers to lenders to brokers and a line of affiliated services all benefit from making the deal happen. If you are an agent or broker, our team can assist you with presenting ideas to potential clients you would have otherwise have considered. If you are a developer or investor, let’s collaborate on the possibilities. Either way, you can be “first in” on what’s next!
(Here is the story: https://trerc.tamu.edu/blog/do-dead-malls-have-game/ )
