Vacant Mall Anchors: Potential Solutions for Homelessness
Could underused department stores in malls become catalysts for affordable housing and help address homelessness in American cities?
Vacant Mall Anchor Stores: Turning a Crisis Into Opportunity
Across the United States, the once-thriving department stores at the heart of suburban shopping malls now stand empty. Accelerated by retail’s downturn and the COVID-19 pandemic, these vacant anchor stores—once filled by Macy’s, JCPenney, Sears, and others—present not only a challenge for property owners but a unique opportunity for urban planners and housing advocates. Can these massive, underutilized facilities help alleviate homelessness and address the growing shortage of affordable housing?
The Twin Crises: Retail Decline and Rising Homelessness
The last decade has witnessed a sharp decline in traditional retail, largely due to the rise of e-commerce and the oversupply of retail space built during previous real estate booms. The pandemic only hastened this trend, with experts projecting that 25% of American malls will close within five years. These closures leave behind large, vacant anchor stores—typically 80,000 square feet or more—which are costly to maintain and difficult to repurpose.
Simultaneously, homelessness in the US has grown more urgent. The pandemic exacerbated the problem, with job losses and evictions sending many into temporary shelters or onto the streets. Policy trends have seen a shift from temporary shelters to permanent supportive housing, with temporary beds decreasing by 9% over five years and permanent housing beds increasing by 20%.
Why Mall Anchor Stores Are Uniquely Suited for Housing Solutions
- Size and Location: Anchor stores are typically large (60,000–150,000 sq ft) and centrally located, with parking lots, transit access, and proximity to community resources.
- Infrastructure: Many are structurally sound, with open floor plans ripe for adaptive reuse.
- Potential for Mixed-Use: Their size allows for a blend of housing, retail, job training, and social services.
Adaptive Reuse: Models and Examples
Innovative stakeholders—architects, nonprofits, developers, and local governments—are exploring ways to convert these spaces into transitional or permanent housing and community resource centers:
Case Study: The Carpenter’s Shelter, Alexandria, VA
- Location: Former Macy’s department store inside Landmark Mall
- Model: Temporary shelter built in 18,000 sq ft of the 150,000 sq ft vacant Macy’s
- Features: 60 shelter beds, dining room, day center, bathrooms, offices
- Outcome: Successful temporary solution as the organization moves to a permanent building with 10 affordable housing units for clients and 87 for those making 50–60% of median income
Re-Habit Concept: KTGY Architecture
- Concept: Transform obsolete big-box stores into mixed-use hubs with transitional housing, small retail, employment centers, and support services
- Design: Carved entry path, retail frontages, courtyard, sleeping rooms (2, 12, and 20 beds), supportive services, apartments above retail, roof gardens
- Community Integration: Collaboration with local shelters to create effective, welcoming spaces
Orange County, CA: Mall Redevelopment
- Redevelopment: Former JCPenney and Sears at Orange Mall being converted into mixed-use housing and entertainment centers
- Goals: Revitalize neighborhoods, address blight, add over 200 housing projects nationwide on mall sites, with another 200 proposals pending
- Challenges: Financing and construction costs impact feasibility
Potential Benefits of Repurposing Malls for Homelessness Solutions
What others are reading
- Rapid Deployment: Utilizing existing structures enables faster shelter creation than new builds.
- Cost Efficiency: Adaptive reuse can be less expensive than ground-up development.
- Community Revitalization: Reimagined malls can serve as vibrant hubs, reducing urban blight.
- Integrated Services: Housing can be paired with job training, health care, counseling, and retail, promoting stability.
Key Challenges in Adaptive Reuse
- Zoning and Regulatory Issues: Many malls are not zoned for residential or mixed-use development and require city approval.
- Building Limitations: Large, windowless spaces can pose architectural challenges for residential conversion.
- Community Concerns: Residents may resist such projects due to stereotypes, safety concerns, and property value fears.
- Financing: Securing funds for renovations and ongoing support services can be difficult; construction cost variability is a key barrier.
Permanent vs. Temporary Housing: Policy and Practice
While some cities use vacant stores as temporary shelters—as in the Alexandria example—there’s growing interest in transforming these spaces into permanent supportive or affordable housing.
- Surveys by National Association of Realtors: Only about 7% of mall reuse projects have led to multifamily housing development, though interest is rising as state and local governments, property owners, and nonprofits look for new approaches.
- Lakeforest Mall Redevelopment (Maryland): Proposes building ground-up multifamily housing in mall parking lots, combining new construction with partial mall preservation.
Lessons From Successful Projects
| Project | Type | Key Features | Outcome |
|---|---|---|---|
| Carpenter’s Shelter (Alexandria, VA) | Temporary shelter | 60 beds, offices, dining, day center | Successful temporary solution ahead of permanent housing development |
| KTGY Re-Habit Concept | Mixed-use hub | Sleeping rooms, apartments, retail, services, roof garden | Model for future adaptive reuse |
| Orange Mall Redevelopment (CA) | Mixed-use housing | Planned housing and entertainment center | Ongoing; illustrates nationwide trend |
Expert Opinions and Community Perspectives
“Re-Habit, if run correctly, can be a self-contained environment, with people living, working, and then moving into affordable housing. It would be a reward for people who are ready to change their lives.”
– Robert Probst, Long Beach Rescue Mission
Urban advocates emphasize that these projects work best when designed with input from local homeless service providers, future residents, and the surrounding community. When well planned, adaptive reuse can offer safety, dignity, and a pathway to independence for those experiencing homelessness.
Looking Forward: Policy, Advocacy & Funding
- Policy Innovations: Adjusting local zoning laws, incentivizing adaptive reuse, and prioritizing affordable housing in redevelopment plans.
- Public-Private Partnerships: Collaboration between developers, governments, and nonprofits is critical for project success.
- Community Engagement: Early involvement of local residents fosters support and ensures developments meet local needs.
- Sustainable Funding: Capital campaigns, tax credits, grants, and innovative financing options can make these projects viable.
Frequently Asked Questions (FAQ)
Q: Are mall conversions into housing effective against homelessness?
A: They can provide rapid, cost-effective relief and help revitalize communities, but success depends on long-term planning, integration of services, and sustained funding.
Q: What are the main obstacles to repurposing anchor stores?
A: Zoning laws, construction challenges, financing hurdles, and community concerns all inhibit progress; engagement and innovation are key.
Q: Will residential conversions replace all mall anchor stores?
A: Not all projects are feasible; while hundreds have been proposed, many do not proceed due to financial or regulatory challenges. Adaptive reuse will be one of several solutions to a broader housing strategy.
Q: Are there environmental benefits to adaptive reuse?
A: Yes. Reusing existing structures reduces waste, limits resource consumption, and can be more sustainable than demolition and new construction.
Conclusion: A Path Forward for Vacant Anchor Stores
Large, empty mall anchor stores represent both a symbol of retail’s past and an asset for urban futures. Repurposing these vast spaces offers a compelling, sustainable path to tackle the housing crisis and homelessness in American cities, if stakeholders are willing to overcome regulatory and financial barriers. As more successful examples emerge, and as urban policies adjust, vacant anchor stores could become a cornerstone in building inclusive, resilient communities.
References
- https://www.constructionspecifier.com/repurposing-big-box-stores-into-transitional-housing/
- https://blog.realestate.cornell.edu/2020/12/18/retail-vacancy-homelessness-can-two-issues-accelerated-by-the-pandemic-be-addressed-simultaneously/
- https://www.youtube.com/watch?v=uGwhUegDaKo
- https://invisiblepeople.tv/could-shopping-malls-turn-the-housing-crisis-around/
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