NORTH ATTLEBOROUGH – The Emerald Square mall is undergoing a conversion in identity, from a place to shop, to a place to shop – and work.
The third floor of the enclosed mall is being converted to office space, which will remove up to 75,000 square feet from its retail footprint. The exclusive agent is MG Commercial Real Estate, of Providence.
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Learn MoreThe mall now has more than 1 million square feet of retail space on multiple levels, including four occupied anchor stores. While the anchors are stable, mall owner Simon Properties Group Inc. is seeking a conversion that will involve the movement of smaller, interior-facing retail stores on the third floor to available spots on the second and first floors.
This will free up as much as 75,000 square feet, which can be broken up into various sizes, depending on tenant needs, according to Mike Giuttari, president of MG Commercial. The mall property has ample covered parking and ready access to two highways, including Interstate 295 and Route 1, he said.
For now, the third-floor food court will remain in place, Giuttari said, although that could potentially be relocated as well. Emerald Square has already attracted one office tenant: Randolph Savings Bank.
Potential tenants could include uses such as community medical offices, education centers, community college offices and job training centers, according to MG Commercial.
Part of the challenge is getting people to see beyond what is there now, a retail mall.
“We have to get the brokers up here, so they understand what’s available,” Giuttari said.
The transformation to turn the mall into a mixed-use site is part of an emerging trend in retail.
According to its 2016 annual report, Simon Properties has 29 mall properties in the United States, Canada and Europe undergoing either a redevelopment or an expansion involving nontraditional uses, with some sites aimed at drawing in permanent residents at new apartments, others at tourists and visitors staying at hotels.
The publicly traded Simon Properties is the largest owner of malls in the U.S., and has 11 holdings in Massachusetts, although none in Rhode Island. Emerald Square is among its largest properties in Massachusetts.
The company reported an increase in consolidated revenue from its holdings in 2016, up 3.2 percent to $5.4 billion, according to its annual report. Net operating income at existing properties in the U.S. was up 3.6 percent.
In repositioning its properties, Simon is removing defunct anchor stores and adding new retail space, upgraded dining pavilions and upgrading technology, parking and other amenities, as well as adding new mixed-use functions.
“These results are certainly contrary to the public narrative regarding the demise of retail real estate,” said CEO and chairman David Simon, in the introduction to the report.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.