Rising housing demand and a shortage of developable land are transforming some aging malls into vibrant mixed-use communities. Developers are seizing on large mall sites—often surrounded by acres of surface parking—to add thousands of residential units, hotels, and modernized retail designed to attract new visitors.
Three major projects in South Florida are leading the way: The Galleria Mall in Fort Lauderdale, Southland Mall in Cutler Bay, and The Shops at Sunset Place in South Miami. Together, they represent roughly $4 billion in redevelopment activity and will deliver more than 8,000 residential units across over 100 acres of prime urban land.
“These malls are in great locations, but their land has been underused for decades,” said Native Realty CEO Jaime Sturgis. “This new wave of redevelopment is breathing life into properties that had lost momentum.”
Market data underscores the shift. Retail rents in Miami-Dade fell 6.1% year-over-year in Q3, while vacancies rose slightly to 3.2%, according to Colliers. With limited large infill parcels and an annual housing deficit exceeding 10,000 units, developers are reimagining malls as high-density, live-work-play destinations.
At The Galleria Mall, investors led by Russell Galbut’s GFO Investments and Atlas Hill—headed by former WeWork CEO Sandeep Mathrani—plan a $100 million renovation to boost occupancy above 90%. On its parking lots, they’ll add eight residential towers with more than 3,000 units and a 170-key hotel. The team plans to leverage Florida’s Live Local Act, which streamlines approvals for projects that include workforce housing.
In Cutler Bay, the 80-acre Southland Mall is being reimagined as Southplace City, a $1.5 billion redevelopment by American Landmark and BH Group. The plan calls for 4,295 apartments, 150,000 square feet of retail, 60,000 square feet of medical offices, 150 hotel rooms, and a community amphitheater—all while retaining the existing 990,000-square-foot mall structure. The first phase, a 350-unit apartment building called The Current, broke ground in March.
Meanwhile, The Shops at Sunset Place in South Miami—long plagued by high vacancies—is set for demolition early next year. Midtown Development, which bought the property in 2021 for $65.5 million, plans 1,500-plus residential units, a 287-key hotel, and 350,000 square feet of commercial space across nine towers.
Developers and analysts say these transformations are driven by both necessity and opportunity.
“The main driver behind it all is densification and lack of land availability,” said Dave Preston of Colliers. “These mall sites are among the few remaining large parcels where it still makes sense to build up.”
As South Florida’s retail landscape evolves, these once-fading malls are being reborn as mixed-use urban hubs—signaling a new era for regional development.
Source: Bisnow