Across the United States, the retail landscape is undergoing a profound transformation. Once-thriving shopping malls that served as social and commercial hubs in the late 20th century are now being reimagined as vibrant mixed-use developments. In response to the decline of brick-and-mortar retail and changing consumer habits, developers are seizing the opportunity to convert underutilized retail spaces into dynamic urban-style environments that blend housing, commerce, and leisure.
This transformation is part of a broader trend driven by economic necessity and evolving community needs. With the rise of e-commerce and shifting demographics, many traditional malls have seen sharp declines in foot traffic, tenant occupancy, and profitability. Rather than letting these massive structures fall into disrepair, developers are taking a proactive approach by integrating residential units, office space, entertainment venues, restaurants, and parks into the existing infrastructure. These redeveloped centers are being designed not just as destinations for shopping, but as neighborhoods where people can live, work, and socialize—offering an urban experience in suburban settings.
In cities across the country, developers are turning empty parking lots and vacant department stores into apartment complexes, co-working spaces, medical offices, and green public areas. This shift is especially significant given the growing housing shortage in many urban and suburban regions. By repurposing malls, developers can bring much-needed residential units to market while revitalizing neglected real estate.
Take, for example, the Logan’s Crossing development in Chicago. Built on the former site of the Mega Mall, the project has successfully integrated over 220 apartment units alongside more than 60,000 square feet of retail space. The result is a bustling, walkable environment that serves both new residents and long-standing community members. Similarly, in Orange County, California, several malls have been approved for or are undergoing major overhauls. Projects at MainPlace and the former Orange Mall are now incorporating multifamily housing and entertainment venues, helping to address local housing demands and rekindle interest in the areas.
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In Los Angeles, an even more ambitious model is taking shape. In Baldwin Hills, developers are constructing more than 800 residential units atop a new Costco warehouse—a pioneering example of vertical integration between housing and retail. A portion of the housing will be set aside for affordable units, and amenities like a rooftop pool and shared green spaces are designed to foster a sense of community. This project reflects a growing trend among urban planners who aim to maximize land use and create mixed-income, transit-accessible developments.
Trumbull, Connecticut, provides a more modest but equally illustrative example. The town recently approved zoning changes that allow for age-restricted and affordable housing on mall property, part of a broader push to revitalize the area with mixed-use principles. By simplifying land-use regulations and encouraging parcel subdivision, local officials hope to attract investment and reposition the area as a walkable town center. Early projections estimate that the transformation could generate millions in new property tax revenue and significantly improve quality of life for residents.
Driving these initiatives is the growing popularity of the “live-work-play” model in urban planning. This approach emphasizes compact, walkable neighborhoods where housing, jobs, and daily amenities are all within a 15-minute reach. It’s a model that has gained traction globally and is increasingly seen as a solution to many of the challenges facing American cities—traffic congestion, social isolation, environmental degradation, and economic inequality among them. By encouraging density and mixed uses, cities can promote sustainability and improve the vitality of local economies.
The redevelopment of malls into mixed-use communities also appeals to changing lifestyle preferences. Millennials and Gen Z consumers, in particular, are drawn to environments that emphasize convenience, social interaction, and flexibility. They are more likely to prioritize access to entertainment, green space, and co-working areas over proximity to large retail chains. Developers are responding by incorporating elements like open-air plazas, fitness studios, farmers markets, rooftop bars, and coworking lounges into their plans.
However, the process is not without its challenges. Transforming a dying mall into a successful mixed-use development requires significant investment, time, and cooperation among stakeholders. Zoning laws, environmental regulations, and community opposition can delay or even derail projects. Financing can also be a hurdle, especially for developments that include affordable housing components or require extensive demolition and infrastructure work.
Yet, the potential rewards are significant. Not only can these developments revitalize local economies, but they can also foster a renewed sense of community and create more inclusive, livable environments. When executed thoughtfully, they preserve elements of a mall’s original role as a communal gathering place while updating it for a new era of urban living.
As the American retail industry continues to adapt to digital disruption and demographic change, the shift toward mixed-use redevelopment appears poised to grow. Formerly overlooked suburban sites are becoming test beds for creative urban design. The mall, once seen as a relic of consumer culture, is being reborn as a versatile, people-centered space. It is a transformation that offers hope for aging retail centers and a new vision for how we live, work, and connect in the 21st century.