Adding value to a commercial shopping center

As retail suffers and goes through technological change, this presents problems and opportunities for local communities—some of which can be solved through design transformations. 

Thousands of strip malls are struggling or vacant, especially in the suburbs. This image from Wheatland Plaza in Duncanville, Texas, by new urbanist incremental developer Monte Anderson, offers a model for positive transformation. The image also shows the economic advantages of doing so.

At the upper right is the existing single-use commercial center, which is half vacant and valued at only $3 million. We see centers like this, often 50 or 60 years old, outdated, and unable to compete, in many communities, especially outside the largest metros or in lower-value areas (Duncanville is in the Dallas region, but on the south side). 

The revamped plaza, which is underway, is projected to have more than eight times higher valuation. This is achieved by breaking up the large boxes into smaller, more flexible spaces that are more marketable for a higher price per square foot. At the same time, residential buildings are planned for the center of the massive underutilized parking lot.

A strip of green space is added along the arterial road, and trees are planted along the road and throughout the site. A couple of small buildings are placed on the road to screen a new green space open for events (food trucks could be added for more vitality). 

The entire new project is not only mixed-use, with 24-hour presence of people due to the residential, but it is way more interesting as a place. It begins to have a block structure. The diversity and placemaking are reflective in the higher values.

"Commercial repositioning on the existing strip center to be complete this year and the new housing by 2026," according to a LinkedIn post by Jim Kumon, principal at Electric Housing, which is credited with this plan along with Anderson's Neighborhood Evolution and Options Real Estate.

Some planners may question whether this project will be underparked, because land devoted to parking is taken away and residential is added, which needs parking in a suburban location. Kumon explains in a comment that parking for the existing site was very inefficient: the plan adds spaces that weren't there before, both behind the commercial buildings and also along a center drive aisle. 

Wheatland Plaza is a model for revamping a center with social gathering potential and mixed-use, both needed in the suburbs. It does so by making more efficient land use on an underutilized strip center—there are many such low-hanging fruit. Suburbs really need this kind of retrofit: I can think of multiple potential sites for this approach in my region, which is Syracuse, New York.

However, local governments must work with creative developers to make this happen. More flexibility in land planning and codes is needed—in addition to a willingness to think outside of the box. The values shown here make the argument for local officials to be open to new ideas for planning struggling single-use commercial sites.