Revamping Miami’s Shopping Malls: A Solution to the Housing Crisis

Miami’s housing inventory remains significantly below historical averages, creating a pressing need for more living spaces in the region. In response to this demand, developers are turning to an unexpected solution – shopping malls.

One such mall, Sunset Place, located off South Dixie Highway and Red Road, has transformed from a bustling retail destination to a desolate building with no foot traffic. Realtor Bryan Gorrita, who has been closely following the trend of shopping mall redevelopments, sees potential in repurposing these spaces for mixed-use developments.

Midtown Equities, the developers behind the Sunset Place project, are working on plans to incorporate residential units, food and beverage options, and other amenities into the site. Similarly, Southland Mall in Cutler Bay is being redeveloped into Southplace City Center, which will feature residential units, retail space, a hotel, medical offices, and more.

The shift towards mixed-use developments in former shopping malls is seen as a response to the changing retail landscape and the increasing demand for live-work-play communities. Dr. Eli Beracha, Director of Hollo’s School of Real Estate at Florida International University, explains that the prime locations of these malls make them attractive for redevelopment.

While the conversion of shopping malls into residential spaces presents challenges, developers are finding ways to incentivize residents with promises of a vibrant “mini city” experience. Gorrita emphasizes the need for creative solutions to address Miami’s housing shortage, and sees mall redevelopments as a viable option to maximize existing land.

As these projects take shape, the big question remains – what will the rental prices be? Gorrita acknowledges the need for affordable housing in the region and highlights initiatives like the Live Local Act that aim to increase workforce and affordable housing options. However, he predicts that luxury rental units will still dominate the market in high-price areas.

Overall, the transformation of shopping malls into mixed-use developments represents a new chapter in Miami’s real estate landscape, offering a glimpse into the future of urban living in the city.