Search
Sign In
Revitalizing Third-ring Suburbs Through Mixed Use
A project in Georgia showcases the untapped potential for the redevelopment of aging shopping malls.
One of the most significant changes in the real estate industry in recent years has been the extensive redevelopment of struggling malls into mixed-use centers, helping to revitalize these locations as community hubs.
According to a 2023 JLL analysis of 153 U.S. mall redevelopments, 46% were mixed-use projects incorporating at least three uses. Nearly all such mixed-use redevelopments are concentrated in urban cores and first- and second-ring suburbs.
Branch Properties, a private real estate investment and development firm based in Atlanta, believes there is even more opportunity for mall redevelopment in third-ring suburbs, or exurban areas located in the outermost ring of development around metropolitan cities. Recognizing this untapped potential, the firm recently launched plans to redevelop the 55-year-old Lakeshore Mall in Gainesville, Georgia, a rapidly growing third-ring suburb approximately an hour outside of Atlanta.
Mall to Mixed-use Vision
Branch acquired the nearly 500,000-square-foot Lakeshore Mall for $15 million in 2022, recognizing an opportunity to replace an underperforming asset with a mixed-use development that could foster community engagement, drive economic growth and enhance regional appeal. The project’s rezoning was unanimously approved this past February, and Branch anticipates breaking ground next year, with an expected delivery in 2028.
The Lakeshore redevelopment will include 38,200 square feet of outdoor green space, designed to provide Gainesville’s growing population with a true town center for gathering. Courtesy of Branch Properties
Gainesville lacks a modern, walkable destination that blends retail, dining and gathering spaces. To fill this void in the market, the master plan for Lakeshore includes 305,444 square feet of retail space, 652 multifamily units and 38,200 square feet of outdoor green space. Branch also envisions a hotel and townhomes in a future phase. The mall’s key anchors, Dick’s Sporting Goods and Belk, will stay and become part of the redevelopment, as both stores are top performers and important retailers to the Gainesville community.
Open-air shopping centers are the top-performing retail format, outperforming other property types in terms of foot traffic and sales growth, according to JLL research. Redevelopment projects like Lakeshore are particularly critical in third-ring suburbs and growing outer communities, where residents are eager for accessible and activated places to gather. Developing mixed-use projects in third-ring suburbs often present cost advantages compared to similar developments in first- or second-ring suburbs and urban cores. Land acquisition costs are typically lower in these outer suburbs, reducing initial expenses. Additionally, construction in less densely populated areas may face fewer logistical challenges, potentially lowering building expenses.
Originally built in 1970, Lakeshore Mall is a single-level enclosed shopping center. As part of the redevelopment, the mall will remain open during the planning and design phases. Current tenants were informed of the project when signing their leases, ensuring a smoother transition as Lakeshore evolves into a modern, open-air destination.
Why Gainesville?
Branch’s investment in Gainesville reflects broader real estate trends that have long been apparent in first- and second-ring suburbs, where mixed-use developments and retail innovation have reshaped communities. While often overlooked, many third-ring suburbs have the right fundamentals to support real estate with an energized mix of uses and new density. On a macro scale, Branch’s redevelopment of Lakeshore Mall comes at a time of rapid suburban growth, driven by shifting work patterns and lifestyle preferences following the pandemic. Between 2020 and 2023, Gainesville’s population grew by 11% to more than 47,000 residents, largely due to migration from Atlanta and the appeal of Lake Lanier. This growth was a key factor in Branch’s decision to redevelop Lakeshore Mall, knowing that this expanding city needs a true town center. The closest town center currently is The Collection at Forsyth in Cumming, about 25 miles southwest of Gainesville.
Large-scale mixed-use redevelopments have historically been less common in third-ring suburbs due to several key challenges. One factor is the perception of lower demand compared to first- and second-ring suburbs, where dense populations and established retail corridors make investment feel less risky. Infrastructure limitations, zoning restrictions and community resistance have also played a role in slowing the adoption of modern, walkable developments in outer-ring suburbs. However, as demographic shifts, remote work and rising housing costs push more people beyond the urban core, third-ring suburbs are becoming increasingly attractive for investment, especially in areas like Gainesville, where population growth and consumer demand signal strong potential for success.
Positioned between the major thoroughfares of Interstate 985 and state Route 400, Gainesville also connects metro Atlanta with North Georgia’s booming tourism and residential markets. As home to the North Georgia Medical Center, one of the largest medical facilities in the region, Gainesville functions as an important commercial and health care hub. Its proximity to Lake Lanier, which draws about 11.8 million visitors annually, coupled with a growing residential base, further underscores Gainesville’s emergence as a prime redevelopment market.
Community Support and Impact
Since purchasing Lakeshore Mall, Branch has worked closely with the city of Gainesville to ensure alignment between private investment and public planning goals. As part of the master plan, the firm actively collaborates with the city on infrastructure improvements, such as several new turn lanes and pedestrian trails to promote accessibility to and from the property, and sustainable development initiatives to support long-term growth.
Lakeshore should bring a substantial economic boost to Gainesville and the broader North Georgia region. Transforming the aging mall into a modern mixed-use hub is expected to create jobs, increase property values and spur additional investment. Branch has witnessed this positive economic growth in the past, most recently through its redevelopment of Bellevue Shopping Center in Nashville, which generated $150 million in economic impact. Well-executed mixed-use projects can trigger a “halo effect,” attracting further improvements to nearby properties and enhancing a locality’s appeal to new businesses and residents.
Branch views the redevelopment of Lakeshore Mall as a pioneering model for how aging malls in third-ring suburbs can be reimagined into thriving mixed-use destinations. By recognizing Gainesville’s potential and long-term growth trajectory; implementing proven mixed-use principles around public space, amenities, walkability and retail; and fostering strong municipal partnerships, the project could become a cornerstone of Gainesville and North Georgia for decades to come.
Jesse Shannon is partner and president, chief investment officer at Branch Properties.
