Miami’s Housing Crisis: How Shopping Malls are Being Repurposed to Meet Demand
Miami’s housing inventory remains around 37% below its historical average, according to a March report by Norada Real Estate Investments. To address this issue, a new solution has been in the works across Miami-Dade County, and it starts with shopping malls.
Sunset Place: A Desolate Mall with a Bright Future
Off South Dixie Highway and Red Road, Sunset Place has been a desolate building with no foot traffic. However, realtor Bryan Gorrita believes that it has the potential to be redeveloped into a thriving community. "It’s no longer that we are going to depend on just retail outlets to bring people, we need more things to come to the community," he said.
Mixed-Use Development: The Future of Miami’s Shopping Malls
Midtown Equities, the developers of the project, are still working out the details, but the City of South Miami is anticipating mixed-use, residential, and food and beverage offerings. This means that the project will have units incorporated into the site. Gorrita believes that this is the future of Miami’s shopping malls. "From my understanding, they are still working out and fine-tuning what the overall plan will look like. The local government has made it clear they want to redevelop this. It’s currently an eyesore and there’s so much potential."
Cutler Bay’s Southplace City Center
Going south to Cutler Bay, there’s another project. Southland Mall is already being redeveloped into Southplace City Center. According to the town of Cutler Bay’s website, the project will have 4,000 residential units, 500,000 square feet of retail, 150,000 square feet of food and beverage options, a 150-key hotel, 60,000 square feet of medical office space, and an amphitheater. The site is expected to be completed by 2029, with the first rental properties available in early 2025.
Why a Mall Flip is a Good Move
Dr. Eli Beracha, Director of Hollo’s School of Real Estate at Florida International University, believes that a mall flip is a good move. "A lot of those shopping malls are in high-traffic areas and they are in demand. So, they are well-located," he said. Beracha explains that because of the rise of online shopping, brick-and-mortar malls will soon become fewer and fewer. While the empty lots might be considered for mixed-use space because of their prime location, putting the idea into action isn’t that simple.
The Challenges of Converting Shopping Malls
Beracha explains that converting shopping malls into residential space is extremely difficult. "You have to remember that this is not that we are taking the space and we are changing the inside. In a lot of cases, you are knocking the space and you are rebuilding from zero. It’s extremely, extremely difficult to convert a shopping mall into residential space just by altering space," he said.
Conclusion
Miami’s housing crisis is a pressing issue, and shopping malls are being repurposed to meet demand. While there are challenges to converting shopping malls into residential space, the potential benefits are significant. With the rise of mixed-use development, Miami is poised to become a thriving city with a strong economy and a high quality of life.
FAQs
Q: What is the current state of Miami’s housing inventory?
A: Miami’s housing inventory remains around 37% below its historical average, according to a March report by Norada Real Estate Investments.
Q: How are shopping malls being repurposed to meet demand?
A: Shopping malls are being converted into mixed-use developments, incorporating residential units, retail, food and beverage options, and other amenities.
Q: What are the challenges of converting shopping malls into residential space?
A: The challenges include the difficulty of altering the existing space and the need for a complete rebuild in many cases.
Q: What is the potential benefit of converting shopping malls into residential space?
A: The potential benefit is the creation of new housing options and the revitalization of underutilized spaces.
