Will dead malls be the next logistics hubs?

Warehouse landlords look to repurpose old shopping centers

New York /
Aug.August 08, 2017 12:30 PM

Some of the real estate most coveted by e-commerce giants and logistics companies just so happens to be the malls they helped to snuff out.

Warehouse landlords are turning to former malls as new locations for delivery companies and retailers due to their proximity to consumers’ homes and easy access to transportation, the Wall Street Journal reported.

In North Randall, Ohio, for example, Amazon is eyeing the site of the former Randall Park mall for a fulfillment center, which was the largest shopping center in the world for a brief time after it opened in 1976, the newspaper reported. The mall closed in 2009.

And in Mesquite, Texas, FedEx will open a 340,000-square-foot distribution center on the site of the former Big Town Mall, which was demolished in 2006 and later rezoned.

“Land uses do change,” said Michael Landy of Monmouth Real Estate Investment Corp. , which owns the facility and leases it to FedEx.

Analysts estimate that about 400 of the roughly 1,100 malls across the country will close in the coming years. At the same time, there’s an enormous appetite for industrial space, which is expected to see 247 million square feet delivered this year, according to JLL.

Amazon also plans to hire 100,000 full-time and 30,00 part-time workers in the country by mid-2018. The company is planning on opening a 1 million-square-foot distribution center on Staten Island, part of what will eventually be a 3.5 million-square-foot commercial hub being developed by New Jersey-based Matrix Development Group. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
Lewis Road Residential Planned Development (Pine Barrens, iStock)
Big golf, resi project in East Quogue approved
Big golf, resi project in East Quogue approved
Freshly CEO Michael Wystrach and 28 East 28th Street (Photos via Twitter; Google Maps)
Freshly inks big lease in NoMad
Freshly inks big lease in NoMad
From left: BSA chairwoman Margery Perlmutter, DRAW Brooklyn founder Alexandros Washburn, New York City Council Member Carlos Menchaca with renderings of the project (Photos via the City of New York, LinkedIn and Arquitectonica)
How a Red Hook developer circumvented the City Council
How a Red Hook developer circumvented the City Council
From left: Isaac Zion with JMC Holdings' Matthew Cassin (left) and David Taylor (right) (Photos via SL Green; JMC)
Former SL Green exec Isaac Zion joins Acram Group
Former SL Green exec Isaac Zion joins Acram Group
(Photo illustration by The Real Deal)
Inside mall owner Namdar’s rapid growth story
Inside mall owner Namdar’s rapid growth story
15 Park Row (Google Maps)
J&R Music founders sell Park Row apartment tower for $140M
J&R Music founders sell Park Row apartment tower for $140M
Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Gov. Andrew Cuomo (Getty)
Industry reacts to Cuomo’s proposed commercial eviction ban
Industry reacts to Cuomo’s proposed commercial eviction ban
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...