If 1 Billion SF of Retail is Obsolete, Will South Florida Convert its Retail into Housing?

Miami’s housing inventory is significantly below historical averages, indicating a shortage of homes. Addressing this shortage is crucial to meet the demand for living spaces in the region.

Revamping Shopping Malls for Housing

Shopping malls, once vibrant retail hubs, are now being considered for redevelopment into mixed-use spaces, including residential units. Sunset Place and Southland Mall are prime examples of malls in Miami-Dade County undergoing such transformations.

Sunset Place Redevelopment

Sunset Place, now largely vacant, is slated for redevelopment by Midtown Equities. While details are still being finalized, the project is expected to incorporate mixed-use elements, potentially including residential units.

Southplace City Center in Cutler Bay

In Cutler Bay, Southland Mall is being transformed into Southplace City Center, featuring a mix of residential units, retail space, dining options, a hotel, medical offices, and an amphitheater. The project aims to create thousands of new jobs and provide diverse amenities for residents.

Shift Towards Mixed-Use Developments

The move towards mixed-use developments reflects a growing demand for integrated living, working, and recreational spaces within communities.

National Trend Towards Mall Redevelopment

Across the United States, obsolete retail spaces are being repurposed, with over 50% of mall redevelopment projects now including housing. However, converting malls into residential spaces presents logistical challenges and often requires complete reconstruction.

Challenges and Incentives

While repurposing malls offers the advantage of prime locations, the cost and complexity of redevelopment pose significant challenges. Incentives such as the Live Local Act aim to encourage the creation of affordable housing within mixed-use developments.

Implications for Miami's Future

The shortage of available land in Miami-Dade County makes repurposing malls an attractive solution to address housing needs. However, the affordability of rental units remains a concern, with luxury options dominating certain areas.