Will dead malls be the next logistics hubs?

Warehouse landlords look to repurpose old shopping centers

TRD 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
Mall of San Juan (Taubman)

Taubman’s $475M Mall of San Juan gets “knocked out” after reopening

Taubman’s $475M Mall of San Juan gets “knocked out” after reopening
Clockwise from the top: Dov Hertz and Sunset Industrial Park at 75-81 20th Street in Brooklyn; 155 West 29th Street and 1640 Flatbush Avenue in Brooklyn (Credit: Google Maps; 1640 Flatbush via S9 Architecture)

Worst month of the year for big construction filings

Worst month of the year for big construction filings
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Maison Kayser (Photo via Tools of Men via Flickr)

Maison Kayser may bid New York adieu

Maison Kayser may bid New York adieu
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

Vishaan Chakrabarti on a Manhattan real estate market without private cars

Vishaan Chakrabarti on a Manhattan real estate market without private cars
Newmark’s Brian Waterman with 7 Hanover Square (Google Maps, Twitter)

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Newmark nabs REBNY prize for deal with NYC Health + Hospitals
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?
The legislation from a City Council member introduced a bill to temporarily repeal the commercial rent tax for businesses during the Covid-19 state of emergency. (Getty, iStock)

Commercial rent tax cut introduced in City Council

Commercial rent tax cut introduced in City Council
arrow_forward_ios

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

Loading...