Re-purposing Vacant Malls for Coronavirus Purposes-Provided by the National Association of Realtors

The number of coronavirus cases and deaths continues to accelerate dramatically in the United States. As of 4 pm on March 23, the Center for Disease Control (CDC) reported 33,404 confirmed and presumptive cases and 400 deaths covering 50 states, Washington, DC., Puerto Rico, Guam, and the U.S. Virgin Islands. Illinois, New York, California, and Washington are the states that have had the most impact of the outbreak of respiratory illness caused by the novel (new) coronavirus thus far. According to March 23, 2020 CDC data, Illinois has 1,049 cases reported, New York represents the epicenter of the virus at 15,168, California has 1,709 and lastly, Washington State has 1,996 cases. Approximately 41,000 cases have been reported across all 50 states and Washington, DC., which is increasing day-by-day. The coronavirus pandemic is continuing to grow not only in the United States, but new cases arise on a daily basis in other countries as well. 

Containing and treating patients requires hospital beds, ventilators, medical supplies, masks, and other medical supplies that are beyond current capacity and available space. For example, New York(link is external) Governor Cuomo said New York needs 50,000 extra hospital beds. California Governor(link is external) Newsom has asked for a naval hospital with 1,000 beds. 

Vacant retail malls are suited to provide this demand for a larger space in an urbanized area to serve as a temporary hospital or health care armory. Shopping centers, both fully vacant and partially vacant, have close proximity to people, and their large footage can handle large cases as mobile hospital units, emergency mask production, storage of basic goods, etc.

In 2019, 9,350 stores shut their doors, with another 1,883 store closures in 2020, according to Coresight Research, a data analytics company that tracks store closings. E-commerce sales have made inroads into the sales of brick-and-mortars, with 80% of Americans now shopping online. Retail industry analysts anticipate the closure of a third of US malls or adaptive reuse within the next five years. As anchor stores vacate their spaces in malls, how to fill these large empty spaces yields the root of the issue. Typically, as anchor stores vacate and/or if there is a replacement not of the same caliber or the space remains vacant for too long, other mall tenants vacate as well, thus leaving a declining mall in their absence. These vacant malls can, in the meantime, be used as health care armories.
 
Vacant retail space has been repurposed in many ways. Some shopping malls and centers are able to fill in the void with retailers wanting to expand their footprint while others pursue repurposing of the space. Other shopping centers and malls that struggle to find new tenants are purchased by industrial developers or transition into mixed-use spaces. These projects have many mixed-uses such as medical use, food distribution, hotels, fitness centers, education, entertainment, etc.
 

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Source: National Association of Realtors

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