Local Expert: Malls Could Help Fill The Need for Senior Housing

A commercial real estate expert shared some insights on the state of the industry during a virtual Pasadena Rotary Club meeting Wednesday.

Lee & Associates Pasadena Founding Principal Colleen Carey addressed changes and challenges in the commercial real estate business that have wide-reaching effects on the economy as a whole during the meeting, conducted via Zoom.

The changing role of shopping malls is one major shift, she said.

“They’re looking at transitioning these enclosed malls to become mixed use, from the standpoint of office and residential being added,” she said.

“Now, probably less office because office is going to be a very distressed class of business for a long time.”

For Southern California residents age 55 and older, there is an increasing demand for housing near dining and shopping, according to Carey. Malls, which have been suffering due to competition from online retailers even long before the COVID-19 pandemic, may help fill that need.

“It’s up to the Westfields of the world and the huge shopping center owners of these enclosed malls to figure that out,” she said. “But it’s something worth exploring.”

Meanwhile, malls are working to brand themselves as more than just collections of shops, but as entertainment destinations.

“If you don’t make it entertaining to go shopping, you’re going to find yourself with no customers,” Carey said. “So you look at Old Pasadena, that is why there is heavy pedestrian traffic there — because it’s an entertainment source to go walk around, see what’s new.”

Some of the changes brought on by the pandemic may be here to stay, Carey said. The demand for office space, for instance, may never be the same.