A Maryland developer has revealed its vision for what will replace the Harrisburg Mall, a longtime suburban destination destined for the wrecking ball.
- Baltimore-based St. John Properties is proposing a roughly 550,000 square-foot development — dubbed Swatara Exchange — that includes a mix of retail and commercial buildings, with a smidgen of office space.
- While the plan calls for demolishing the indoor mall, it preserves the Bass Pro Shops at the eastern edge of the property, as well as an Applebee’s restaurant and a former Toys R Us store.
- Demolition is expected to begin in March and take just over a year. Grading and construction will follow, with completion pf a first phase slated for fall 2026.
- “While some retail shopping centers continue to perform successfully, the pandemic and rise of e-commerce have taken their toll on enclosed malls,” St. John president and CEO Lawrence Maykrantz said in a statement. “It has become apparent that the best use for this property isn’t pure retail, but rather a business community with a diversified mix of uses.”
What’s the mix: Primarily retail and commercial.
- The retail component includes new retail buildings ranging from 8,165 square feet to 10,765 square feet, as well as a free-standing restaurant and a free-standing convenience store along Paxton Street.
- The office piece is a one-story, 13,600 square-foot building.
- The commercial space is comprised of four structures totaling about 200,000 square feet and identified as flex buildings.
What’s that: Smaller industrial space that can house plumbers, electrical contractors or distributors, among other businesses that need a mix of office and storage.
- Tenants generally require between 6,000 and 10,000 square feet of space, said Art Campbell, president of Lemoyne-based Campbell Commercial Real Estate.
- Developers, however, have focused on building big warehouses, leaving a hole in the market, brokers said.
- “Flex property is highly in demand but it’s difficult to find,” said Naomi Brown, broker of record for Derry Township-based Capstone Commercial.
The background: The Harrisburg Mall opened in 1969 as one of the region’s first-ever enclosed malls.
- St. John bought the property in 2012 for $9.5 million as part of a joint venture.
- The company said it spent about $1 million on renovations and achieved some success in attracting tenants but noted that some key tenants have left, including Macy’s and a movie theater.
- The new plan drew positive reviews from Ryan Unger, president and CEO of the Harrisburg Regional Chamber and Capital Region Economic Development Corp.
- “It’s a great location and I think a lot of what they want to do with it makes sense,” said Unger.
The trend: Over the last few years, struggling retail centers have attracted developers interested in reinventing them.
- In Lancaster County, for example, New Jersey-based Fernmoor Homes is planning to spend tens of millions of dollars to bring apartments to the Shops @ Rockvale outlet mall.
- In Lower Paxton Township, Dauphin County, local officials are hoping to attract mixed-use development to the Colonial Park Mall.
- And in Franklin County, the Franklin County Area Development Corp. is pushing for redevelopment of the vacant Chambersburg Mall.
