Reviving a Dying Mall

Much has been speculated about the death of the mall and what to do about it, and solutions vary. One innovative reuse of an aging, enclosed mall can be found in Austin, Texas, where a local community college is taking over the space, and a developer partner is proposing to develop a mix of housing, office, and retail uses on surrounding surface parking lots. Learn more to learn the specifics.

Much has been speculated about the death of the mall and what to do about it, and solutions vary. One very innovative reuse of an aging, enclosed mall can be found in Austin, Texas, where a local community college is taking over the space, and a developer partner is proposing to develop a mix of housing, office, and retail uses on surrounding surface parking lots.

The project is part of a greater planning effort to redevelop a stretch of Airport Boulevard, a mid–20th century urban highway. In many ways, the former Highland Mall is the signature project for the corridor. A partnership between Austin Community College (ACC) and Red Leaf Properties will redevelop the 80-acre (32-ha) site. The footprint of the 1.2 million-square-foot (111,600-sq-m) mall will not change appreciably, but the former anchor department stores will become administrative offices and classroom space for ACC. Red Leaf Properties will develop 2 million square feet (186,000 sq m) of residential, retail, office, and hotel uses on 40 acres (16 ha) of parking lots.

Included in the plan is a strong pedestrian connection to the Highland station stop of Capitol Metro’s new passenger rail line in Austin. As well, the plan for the Highland Mall site, as for the entire Airport Boulevard, is for a form-based code to drive the approvals process and zoning. The form-based code will dictate building height, density, and design, as well as streetscape, providing the developer with more certainty for their project and others along the corridor.

Despite good public reception and the form-based code, the plan for the Highland Mall redevelopment is complex. The mall must be purchased from multiple entities, including a rare partnership between Simon Properties and General Growth that owns the buildings, and AIG, which owns the land. Cross-easements exist and utilities run below the site. Furthermore, complex financing agreements must be hammered out for development to occur.

Overall, the site offers an excellent location for the Austin Community College to establish a headquarters campus, and for a mix of uses to be added to a major and transit-served corridor in the city. The redevelopment of the Highland Mall should provide a critical anchor for the revitalization of the Airport Boulevard Corridor.

Sam Newberg is an urbanist, real estate consultant, writer, and founder and president of Joe Urban, Inc., based in Minneapolis.
Related Content
Members Sign In
Don’t have an account yet? Sign up for a ULI guest account.
E-Newsletter
This Week in Urban Land
Sign up to get UL articles delivered to your inbox weekly.
Members Get More

With a ULI membership, you’ll stay informed on the most important topics shaping the world of real estate with unlimited access to the award-winning Urban Land magazine.

Learn more about the benefits of membership
Already have an account?