Norfolk to Pay $1.5M to End H&M's MacArthur Center Lease Early

City leaders aim to redevelop the struggling mall site with new homes, hotels, and retail.

Published on Feb. 11, 2026

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The City of Norfolk, Virginia has agreed to pay the clothing retailer H&M around $1.5 million to terminate their lease at the MacArthur Center mall early. The mall is set to close on June 30, 2026 as the city prepares to redevelop the 1.1 million square-foot property with new market-rate housing, additional hotel rooms, street-level retail, and improved public spaces.

Why it matters

The MacArthur Center has faced declining foot traffic and store closures in recent years, reflecting broader challenges facing malls across the country. By buying out H&M's long-term lease, the city hopes to more quickly transition the site to a new mixed-use development that aligns with its downtown revitalization goals.

The details

H&M's initial lease included renewal options through 2043, but the city council approved a resolution to reschedule the lease termination date to September 30, 2026. Either party can end the lease early with 60 days' written notice starting May 1. The redevelopment plan aims to create new market-rate homes, additional hotel rooms, street-level retail, and improved public spaces and connectivity.

  • The MacArthur Center will close on June 30, 2026.
  • H&M's lease will be terminated on September 30, 2026.

The players

City of Norfolk

The local government of Norfolk, Virginia that owns the MacArthur Center mall and is overseeing its redevelopment.

H&M

A major international fast fashion retailer that had a long-term lease at the MacArthur Center mall.

MacArthur Center

A 1.1 million square-foot shopping mall in downtown Norfolk that opened in 1999 but has faced declining patronage in recent years.

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What’s next

The city council will determine the specific redevelopment plans for the MacArthur Center site in the coming months, with the goal of transforming the property into a mixed-use destination with new housing, hotels, and retail.

The takeaway

The closure of the MacArthur Center mall and the city's $1.5 million buyout of H&M's long-term lease represent an opportunity to reimagine downtown Norfolk, shifting away from a traditional enclosed mall towards a more vibrant, walkable, and mixed-use district that better serves the community's evolving needs.