Municipalities Are Embracing Mall Redevelopment: What It Means for the Future of Retail

Across the country, municipalities are playing a more active role in the redevelopment of aging malls—a trend accelerated by the pandemic and the shifting retail landscape. At Poag Development Group, we’ve seen firsthand how collaboration between developers and local governments is shaping the next generation of retail and mixed-use destinations.

Why the Shift?

Before the pandemic, many communities viewed their enclosed malls as untouchable icons—valuable tax sources and social hubs that would eventually rebound. COVID-19 changed that outlook. Declining sales and the success of lifestyle centers and mixed-use projects highlighted the need for new strategies. Today, municipalities are more open to placemaking concepts that prioritize outdoor spaces, experiential retail, and integrated uses like residential and hospitality.

The New Approach to Redevelopment

Successful mall redevelopment requires more than design innovation—it demands collaboration and clarity. Municipalities want realistic, achievable plans that align with community needs and infrastructure parameters. At Poag, we work closely with local stakeholders from the start, ensuring our vision reflects the highest and best use of space while inspiring confidence in long-term potential.

Key Ingredients for Success

• Right-sizing retail: Reducing square footage to create a curated mix of tenants and complementary uses.
• Anchor flexibility: Working with existing anchors to maintain stability and enhance the overall experience.
• Placemaking power: Transforming enclosed malls into vibrant, open-air destinations with dining, entertainment, residential, and hospitality components.

Our Commitment

Poag Development Group has been at the forefront of this evolution, turning underperforming malls into thriving mixed-use communities. Projects like Perry Crossing in Indiana showcase how strategic redevelopment can create dynamic gathering places that serve both economic and social needs.

Want to dive deeper into this topic?
Read Josh Poag’s full article on Chain Store Age