Community Shopping Centers – Description and Financing

Community shopping centers generally have below 200, 000 rectangular feet in gross leasable area. They are often designed as enclosed or open-air department stores or as strip centers. The centers are arranged around more than one of the major national or local retailers, one or two “junior” department stores, or a store owned by a company specializing in smaller department store businesses. A junior department store will generally have between 30, 000 and 60, 000 square feet and have a full line of soft goods (clothing, literature, and so on) and sometimes some hard goods (appliances, furniture, and so on). buy shopping center

Inside the 1980s, major national and regional discount department stores emerged as new, substantial anchors for community shopping centers. Stores such as K-Mart (of the S. S. Kresge Corporation) and Wal-Mart became the dominant force in retail sales growth in the usa in the late eighties. These stores, usually between 75, 000 and a hundred twenty five, 000 sq ft, be competitive for discount shoppers with merchandise priced below that of the traditional division store. These super-discounters have become the most popular anchors in many new community strip centers because of their heavy advertising, low prices, and excellent locations, which generate shopping traffic.

Community shopping centers generally require trade areas with populations of 75, 000 or more. Nevertheless, these centers are often situated in smaller towns that serve as a shopping area for a much larger, multi-community area. Besides the anchor stores, the twelve tenants more than likely to look in these centers are:
women’s ready-to-wear shops

restaurants (with liquor service)

fast food/carryout restaurants

beauty hair salons and spas

family shoe shops

earrings outlets

card and present retailers

restaurants (without alcohol service)

women’s specialty clothing retailers

In remove centers, the anchor usually has a key location; if there are several anchors, they are separated. That is important to bear in mind that due to the
weather-exposed design of strip centers, customers generally walk for short distances between stores to shop than is the situation in an enclosed shopping center area. Rents in tape centers will generally run 40 % to sixty % less than those found in similar selling areas in enclosed shopping malls. As a rule, sales per square foot will be correspondingly lower than sales in enclosed department stores.

Like major department stores, food stores are vacation spot stores. The other professional tenants depend to some degree on the occasional or impulse sales afforded by a good location in the pedestrian traffic design between the larger stores. Like the anchors in large super-regional malls, vacation spot stores in community shopping centers often pay housing costs that cover the particular costs to the center’s owner; the more specific retailers pay rents that represent true profit potential.