I recently read an article that I found absolutely fascinating. It discussed a creative real estate strategy where investors are buying dead malls and replatting the parking lots into smaller parcels. These parcels are then either ground leased or sold to drive-through food businesses. This innovative approach essentially recoups the entire investment made to purchase the mall.
Imagine this: stores and drive-throughs sprouting up in front of a once-lifeless mall. I’ve seen clients successfully develop lots from old Kmart properties by carefully carving out enough land for solid drive-through stacks with good visibility and access.
One of the coolest aspects of working with franchisees and franchise systems is witnessing this kind of creativity and innovation firsthand. Franchising often frees up operators from the nitty-gritty of daily operations, allowing them to focus on growth, finance, and seizing new opportunities. This flexibility seems to foster a spirit of innovation within the franchise world.
For those of you who haven’t considered this yet, next time you’re driving by a closed shopping mall or an old, defunct Kmart with good visibility and access, it might be worth your while to find out who owns it. Ask if they’d be interested in breaking off a piece for you to develop. Some franchise concepts are such strong destinations that they can thrive even if there’s a dead mall behind them.
I hope this sparks some new ideas for someone out there. If not, I’ve at least enjoyed sharing what I find to be a fascinating real estate trend. The creativity in repurposing these dead spaces into thriving business hubs is truly remarkable.
