At RockStep Capital, we specialize in transforming underperforming shopping centers—especially in secondary and tertiary markets—into thriving, mixed-use developments that better serve their communities. This isn’t about simply repurposing retail spaces; it’s about reimagining these properties as dynamic hubs that bring together retail, entertainment, hospitality, healthcare, and even residential components to create sustainable, long-term value.
Mall redevelopment is a complex and nuanced process. It requires a deep understanding of market demand, tenant needs, financial feasibility, and community engagement. Our approach is data-driven, highly strategic, and always centered around aligning our projects with local economic and cultural needs.
Not every mall is a candidate for redevelopment. When assessing a property, we typically consider three core strategies:
A critical factor in deciding whether to redevelop is net operating income (NOI). If you have a situation where you have unstable net operating income—in other words, it's falling, and you cannot stem the fall or stabilize or sustain a level of net operating income—it becomes a likelier candidate for redevelopment.
However, NOI alone doesn’t drive the decision. There has to be an “engine” for redevelopment—something that provides the momentum to make the project financially and operationally successful. An engine is a large retailer that wants to be on the land or in the existing architecture. Sometimes, that means repurposing the existing structure for lower occupancy costs, and other times, it means demolishing and starting fresh. But a redevelopment is unlikely to succeed without an anchor or demand driver.
Retail still plays a role in our redevelopments, but it has to be right-sized and restructured to meet current market demands. Malls in secondary or tertiary markets that have unstable net operating income—in other words, it’s not sustainable—need a strategy.
The key is moving viable tenants to exterior-facing spaces. Tenants are viable and sustainable if they move or are located with an outside entrance, and the layout of many older malls makes this feasible. In other words, there's a width of frontage to create outside entrances through a department store, vacant department store box, or some other wall feature that can be converted to outside.
Once retail is reconfigured, the remaining space can be repurposed. If you rightsize the property by reducing the amount of square footage for retail, most likely facing it out, oftentimes there is acreage—there is space to the side or the rear—that multifamily or hospitality or other type of use could be justified.
We determine the best use of that excess space by considering:
This approach ensures that retail remains an important development component while making room for other uses that add value to the community.
We are currently working on six mall conversions across the country. Each is unique, but they all share a common goal: turning struggling retail properties into thriving mixed-use developments.
To make a conversion work, you need community support. Cities and municipalities understand that malls, if left undeveloped, can become liabilities. Because generally, they want new tenants, and they know that a mall's architecture is often outdated and malls can be vulnerable to deterioration. They want to support efforts to reinvent or stabilize that property.
Public-private partnerships, tax incentives, and grant programs can help bridge financial gaps. The conversion in Scottsbluff, Nebraska, Hutchinson, Kansas, and Virginia, Minnesota, required city incentives. These projects wouldn’t be feasible without collaboration between developers and local governments.
The biggest trend shaping the future of mall conversions is the rising cost of new construction. Construction costs are up by 30, 40%, and interest rates are up. I don’t expect interest rates to fall. As a result, existing retail space is becoming more valuable. The occupancy costs of second-generation space are lower than the occupancy costs of new space.
At RockStep, we are focused on ensuring every redevelopment aligns with the needs of tenants and the community. Shopping centers are really driven by tenant demand. So if a major quality investment-grade tenant has an interest in being part of the development, that's really what drives that redevelopment.
At RockStep Capital, we don’t just redevelop malls—we reinvent them. No one in the country does it like us, and that’s because we take a unique, hands-on approach that sets us apart from traditional real estate firms.
We’re vertically integrated. We’ve got a lot of experience in mall conversions. We’ve got high-quality people—many have been trained in institutional-type companies. Our team isn’t just experienced; we’re strategic. Every redevelopment project we take on is carefully analyzed for financial feasibility, tenant demand, and community impact.
But expertise alone isn’t enough. What truly differentiates us is our ability to align with local interests. We have an investor network that can help us align with the community's interests and help us get community support and focus. That means we don’t just make investments—we build relationships with local lenders, city officials, and stakeholders to ensure our projects have long-term sustainability.
We have a clear mission: we want to be the country’s leading mall transformation investment company in secondary and tertiary markets in the United States. We’re not just acquiring properties—we’re actively shaping the future of retail real estate by applying the RockStep strategy.
The RockStep strategy is simple: smart purchase, local investors, local lenders, and community alignment. We don’t believe in short-term fixes. Instead, we focus on long-term value creation by combining the right mix of retail, entertainment, hospitality, and mixed-use components that make sense for each market.
Malls are not dead—they’re evolving. And we are at the forefront of that evolution. With the right strategy, strong partnerships, and a deep understanding of market demand, we are transforming underperforming shopping centers into thriving, multi-use destinations.
At RockStep, that’s exactly what we do. And we plan to “live happily ever after.”