Many well-known retailers who occupied anchor spaces at malls and shopping centers had to make the difficult decision to shut down their stores permanently, both before and after the COVID-19 pandemic. Large department stores chains like Sears closed malls, often leaving behind blocks of contiguous space totaling 100,000 square feet or more.

Owners, operators, and developers of shopping malls and shopping centers must consider the community's demographics that the mall will serve. A developer must first determine the best economic use of the vacant space in order to fill it.

A healthcare destination may be the best solution for an elderly community. Conversely, it might make sense to have an entertainment venue in a new urban area. Every community is unique, and each one has its own demographic data. These elements are essential to finding a long-lasting solution to underutilized real property.

Many mall structures have been converted to service-based uses, such as health/wellness centers and sports facilities. This article will discuss three possible new uses of dark retail anchors. We'll also examine the construction methods and timelines.

Activities That Are Not Digital

These new uses are tied together because they are generally not best served via an online-centric business model. Nelson Worldwide architects have observed that many retail owners are now promoting the addition of fitness, wellness, or rehabilitation centers as a way to fill vacant retail anchor spaces. These centers require large blocks of contiguous space and drive foot traffic. They require customers to travel to the center to access a service or participate in an activity, which is not possible with online shopping. Many activities such as pilates, kickboxing, and weightlifting require special equipment or supervision. It is difficult for an average person to do these activities at home.

Planning and Zoning Approvals

It is important to remember that many of the former retail anchor boxes were not significantly renovated or upgraded since their original construction. This presents an opportunity for significant design changes that will make the structure more outward-facing to reengage the community. Most dark anchor conversions will require modifications to buildings, vertical transportation, and safety elements. This means that most changes to the base building will need planning or zoning approvals. These requirements will vary depending upon the jurisdiction. Part of a large mall, dark anchor conversions falls within the scope of Reciprocal Empowerment Agreements (REAs). Therefore, all parties to the REA may need to approve any significant changes in design or construction.

Healthcare Facilities

The U.S. has a growing number of baby boomers who are in dire need of more healthcare facilities. Healthcare providers and systems have the opportunity to capitalize on dark anchor spaces in order to meet future demand. Many things need to be considered when a dark anchor retail space is transformed into a healthcare facility. For example, it is not possible to transform an existing retail space into radiation or surgery centers within a mall due to the required technology and equipment. Instead, developers should consider adding outpatient services like primary and specialty care, administrative and support services, and urgent care.

Healthcare services that are offered in malls can bring about additional benefits to key stakeholders (e.g., the owners, patients, and healthcare providers). The mall is the patient's waiting area, which generates foot traffic and revenue for nearby stores. Patients who are able to run errands and see a doctor while at the same time can access a variety of non-medical services in one place will find it convenient.

Costs And Timeline

The timelines for the construction and design of a retail space that is being repurposed into healthcare uses will vary depending on its size and complexity. For example, Nelson is currently working on a project where the conversion of an empty Sears anchor shop to a medical facility will take between eight and ten months to plan and design and 12 to 14 months to construct.

Architects and designers must consider unique design elements during the design process. For example, concrete slabs may require extensive "trenching" in order to accommodate plumbing lines, such as those that connect with toilets and sinks. Additional plumbing is necessary for healthcare facilities, in particular, to accommodate exam rooms and other clinical requirements.

The columns in retail space are usually placed between 30 and 36 feet apart. Ceiling heights vary from 10 to 14ft. This allows for large volumes of space that can be used to create stunning environments with curves, shadows, and horizontal planes. This type of grid space can be used to create simple medical spaces, offices, and exam rooms. However, the cost for medically-based fitness and wellness programs with features like "natatoriums," which are indoor swimming pools, is approximately $165 to $185 per sq. foot.

Sears Anchor Renovation

Nelson Worldwide is currently repurposing a section of the vacant Sears building at Oakdale Mall, Johnson City, New York, for Ascension Lourdes Hospital. The conversion will create 37,600 square footage of wellness and fitness space. It will include 26600 square feet of fitness space and an 11,000 square-foot natatorium with three pools.

A total of 38,200 square feet will be constructed for clinical and administrative purposes. This includes a sports rehabilitation area (11 200 square feet) on the ground floor. The second floor will have clinical and administrative uses. It will total 27,000 square footage and accommodate pharmacy, laboratory services, radiology, orthotics, timeshare specialties, and common areas.

The former Sears anchor redevelopment also includes a Beer Tree Brewery, Tasting Room, and Restaurant (17,000 square feet on the first floor, and 6,400 on the second). There are also office uses for Broome County (422,000 square feet on the second floor).

Sports and Entertainment

Many dark anchor spaces can be transformed into entertainment and sports venues, particularly in areas with young people. For example, fieldhouse USA, a project in Columbus, Ohio, has converted an old Sears departmental store into a multi-purpose indoor facility that offers a wide range of sports activities for community use. The facility is primarily focused on hosting weekend events and sporting tournaments. It attracts people from all parts of the country.

It is located in the Polaris Fashion Place mall and serves as an important resource for foot traffic. Parents and players use the mall to wait before their games. They can then browse the nearby shops or have a bite in the food court. The mall's "dwell-time" is expected to boost retail sales when Fieldhouse USA opens later this year.

Polaris Fashion Place purchased the Sears former site in April 2018 for $11 Million. Construction began in 2019.

Industrial Facilities

Light industrial, warehouse, or distribution uses can be accommodated in dark anchor spaces, particularly near airports or ports. The permits required to start a project in an old retail space must be considered. A zoning review application is required for any conversion from retail to an industrial structure. This approval must be based on a change of land use. For the racking system inside the facility, a separate application is required.

Materials And Timelines

A smooth concrete floor surface is preferable in industrial settings. Depending on the intended use, additional work may be required to create a level floor or apply a special coating. Slab-on-grade construction, which is also preferred for healthcare conversions, is preferable to provide a solid foundation. This ensures that there is no space between ground and structure. Trucks hauling heavy loads should be considered. Modifications to exterior walls may be necessary to add loading docks and man doors.

These types of conversions take a different time frame depending on where they are located, how large the facility is, and what type of construction is being done. Depending on the jurisdiction, retail-to-industrial conversions can take anywhere from six to twelve months to get zoning approvals. This is not to mention the time required for design and construction.