The Weekly is STREAMING now. Join us at HorizonTV

Mall property redevelopments could result in dramatic property value drops

Retail conversions to fulfillment centers, apartments, schools, or medical offices could cut values 60% to 90%.

October 26, 2020 |
Mall property redevelopments could result in dramatic property value drops

Photo courtesy Pixabay

   

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.

Overlay Init

Your card will be charged: 0

Success!
x