In a move that demonstrates the growing trend of adaptive reuse in commercial real estate, General Dynamics Electric Boat (EB) has announced plans to repurpose a former Macy’s store at Crystal Mall in Waterford, Connecticut. This new development, unveiled on July 7, 2025, will see the transformation of the 121,000-square-foot retail space into engineering, training, and laboratory facilities for the company. Electric Boat, which manufactures submarines for the U.S. Navy, expects the facility to house approximately 700 employees by 2027.
A Creative Solution to Space Constraints
The acquisition of the Macy’s space is part of Electric Boat’s strategy to overcome growing space constraints at its primary location in Groton, Connecticut. The company has faced increasing demand for its services due to the rise in submarine production, and its existing facilities were quickly running out of room to expand. By repurposing this vacant retail property, Electric Boat will not only alleviate some of its production bottlenecks but also contribute to revitalizing an underutilized commercial property.
This is an important development for the future of commercial real estate—especially in the context of an industry that has seen its share of struggling retail spaces due to the rise of e-commerce. This transformation represents a potential model for how vacant malls can be reimagined into productive industrial spaces, housing everything from office complexes to research facilities.
The Adaptive Reuse Trend in Real Estate
The trend of adaptive reuse—the practice of repurposing old buildings for new uses—has been growing steadily in recent years. In this case, Electric Boat’s move could serve as a model for other businesses looking to expand or relocate while breathing new life into abandoned or underperforming retail properties. As more malls and department stores struggle to maintain foot traffic, adaptive reuse offers an environmentally sustainable and economically viable solution.
For commercial real estate investors and developers, this trend presents new opportunities. Properties that might have otherwise been destined for demolition can now be redeveloped into spaces that meet the needs of modern industries, all while preserving the structural integrity of the original buildings. The economic benefits are clear—adaptive reuse projects not only revive existing properties but also create new jobs, contribute to local tax revenues, and attract new businesses to the area.
What This Means for Local Economies
The relocation of Electric Boat’s operations to the former Macy’s store is expected to provide a significant boost to the local economy. The new facility will generate hundreds of high-paying jobs, while the redevelopment of this previously vacant property will increase the local property tax base. Additionally, the project is expected to attract other businesses looking for high-tech industrial space, further stimulating economic growth in the region.
As more companies look for innovative ways to meet their space needs while minimizing their environmental footprint, adaptive reuse will likely become an increasingly popular solution. For commercial real estate professionals, this trend presents opportunities for strategic acquisitions and developments that align with both economic and environmental goals.
The Future of Retail Space in Real Estate
As the demand for traditional retail spaces continues to decline, the need for flexible, multi-use commercial spaces is becoming more pronounced. Properties that were once considered obsolete may find new life as companies like Electric Boat look to repurpose them for modern industrial and technological uses. This shift not only benefits businesses but also helps preserve the architectural and historical value of these buildings, ensuring they remain integral parts of the local landscape.
The success of projects like Electric Boat’s will undoubtedly encourage other companies to consider adaptive reuse for their own space needs. For commercial real estate agents and investors, this is a growing niche that requires expertise in repurposing properties and understanding the long-term potential of transforming outdated retail spaces into thriving hubs for business activity.
