Thursday, May 2, 2019

The new mall tenant is your office

Boston Business Journal
The redevelopment of Westside Pavilion, a dying mall in Los Angeles, is one of the latest examples of a nationwide trend in commercial real estate: the conversion of malls into office space. Offices are less risky than retailers, and in some cases they can generate foot traffic for the mall’s remaining stores and restaurants.

The biggest beneficiaries of the conversions are coworking enterprises, like WeWork, which provide shared work spaces primarily to entrepreneurs, freelancers and startups. The highest concentration of coworking spaces in retail nationally is in malls, according to an August study by the global property company Jones Lang LaSalle. The same study predicted that coworking space in retail in general would grow at an annual rate of 25% through 2023.. . . more