Aging malls are being transformed into mixed-use developments, often designed as modern town centers to revive their role as community hubs, blending retail, office, and residential spaces.
Reconstruction projects, including adaptive reuse and facility conversions, are gaining traction as a sustainable solution to repurpose underused spaces and meet evolving market demands.
The Swatara Exchange redevelopment in Harrisburg, PA exemplifies this trend, combining over 550,000 square feet of flex, retail, and office spaces to create a vibrant, community-focused commercial hub.
Construction to transform the former Harrisburg Mall into the Swatara Exchange is set to start in spring 2026, ABC27 reported.
The 60-acre redevelopment project, Swatara Exchange, is located at Paxton Street and I-83 in Dauphin County, PA, and will feature over 550,000 square feet of office, flex/R&D, and retail space across 12 new buildings upon completion.
Harrisburg Mall was demolished after a 54-year run in the summer of 2025 to make way for the multi-use project developed by St. John Properties.
The Swatara Exchange is projected to create up to 1,000 jobs and generate $1 million in annual tax revenue.
The project will proceed in phases, according to developers. The Swatara Exchange will begin construction of two single-story flex/R&D buildings at 55 and 57 Enterprise Drive, totaling over 100,000 square feet.
Additionally, an 18,000-square-foot inline retail building at 53 Enterprise Drive, fully leased to 2nd & Charles, will be part of this phase.
An image of the 60-acre Swatara Exchange site plan from developers St. John Properties. The Harrisburg, PA multi-use property will feature over 550,000 square feet of office, flex/R&D, and retail space across 12 new buildings upon completion. It sits on the location of the former Harrisburg Mall. Image: St John Properties
Other construction elements include drive-thru retail sites and pads for convenience stores and restaurants, bringing the total Phase I footprint to approximately 150,000 square feet.
The first wave of buildings is expected to be delivered by early 2027. The project is designed to meet LEED Certification standards, emphasizing sustainability.
As the retail landscape continues to evolve, aging malls are being reimagined (also called repurposed, redeveloped, or reconstructed) into vibrant mixed-use developments, a trend gaining momentum across the country.
According to the Urban Land Institute, “one increasingly popular trend has been to redesign them as new town centers, recalling a time when such commercial districts were the heart and soul of a community.”
This shift reflects a growing demand for spaces that blend retail, office, and residential uses, fostering a sense of connection and community.
Adding to this perspective, ConstructConnect highlighted the growing importance of reconstruction projects, noting that “adaptive reuse and conversion of unutilized facilities” are becoming key strategies in the construction industry.
Reconstruction, including office-to-residential conversions, was noted to become increasingly important.
This approach, discussed in the November 2025 Construction Economy Outlook webcast, not only revitalizes underused spaces but also aligns with the growing demand for sustainable, community-focused developments.
While much of the former mall has been demolished, key anchors like Bass Pro Shops and Applebee’s remain operational. The 56,349-square-foot former Toys R Us building is currently being marketed for lease or sale.
Future phases will include additional flex/R&D and office buildings along Keystone Way, as well as retail pads based on market demand. However, specific timelines for these phases have not yet been confirmed.
Situated near major population centers and highway systems, the Swatara Exchange benefits from its proximity to Interstate 83, which is undergoing significant upgrades. The site’s strategic location and direct access points make it an attractive option for a diverse range of tenants, including professional services, light manufacturing, logistics, and retail.
The Swatara Exchange redefines the commercial landscape of South Central Pennsylvania by redeveloping outdated real estate into modern, flexible space for businesses and consumers. A trend that’s expected to continue.
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