The number of food halls is skyrocketing, from roughly 120 projects nationwide in 2016 to an expected 450 by the end of 2020, according to the report, titled Food Halls 3.0: The Evolution Continues.

“The food hall represents the ultimate project amenity for multifamily and mixed-use developers,” the report states. “This is particularly true for owners/landlords looking for office space tenants in a marketplace where the challenges of attracting and retaining talent are paramount.”

But they have to be conceived, designed and executed carefully to succeed, the report cautions. Food halls must offer authentic, quality dining experiences, rather than the mass-market approaches reminiscent of the mall food courts of yesteryear.

“The trend in food halls is evolving in a number of ways, but there are a few things that haven’t changed,” the report notes. “Successful projects will emphasize constituency, quality and sourcing, rather than big-box predictability.”

Food halls are playing an increasingly important role in the mall industry, where space given over to food, beverages and entertainment has risen from an average of 10 percent of the total in 2006, to 20 percent last year, the report said. 

Research shows high demand for food halls among consumers and among other tenants at malls, according to the report. “So it should be no surprise that almost all of the active mall players are either getting involved in opening food halls or food-hall-inspired projects.”