Regional Shopping Center

Definition

A regional shopping center is a type of retail property characterized by its significant size and diverse mix of retailers. These centers typically encompass 300,000 to 900,000 square feet of gross leasable area (GLA) and include at least one major department store as an anchor tenant. Regional shopping centers are designed to serve a broader market than smaller-scale centers such as strip, neighborhood, or community shopping centers but are smaller than super-regional centers, which offer more extensive retail options and services.

Examples

Cherry Creek Shopping Center in Denver, Colorado: Covering over 1.1 million square feet, this center includes major department stores like Nordstrom and Macy’s along with a variety of specialty stores.
The Mall at Rockingham Park in Salem, New Hampshire: With 900,000 square feet of retail space, this mall features anchor stores such as Macy’s and JCPenney.
Westfield Annapolis Mall in Annapolis, Maryland: This regional shopping center spans 1.5 million square feet, hosting anchors like Nordstrom and Macy’s along with numerous other retail and dining options.

Frequently Asked Questions

What differentiates a regional shopping center from a community shopping center?

A regional shopping center is significantly larger, typically ranging between 300,000 to 900,000 square feet and anchored by one or more major department stores. In contrast, community shopping centers are smaller, usually 100,000 to 300,000 square feet, and do not always feature major department stores.

How do regional shopping centers attract customers compared to other shopping centers?

Regional shopping centers attract customers from a larger geographic area by offering a wider variety of retail stores, dining options, and entertainment facilities. The presence of anchor stores like major department stores also enhances their appeal.

Are regional shopping centers viable in the current retail environment?

While the retail environment is evolving due to the growth of e-commerce, regional shopping centers remain viable by integrating experiential retail, entertainment options, and services that cannot be easily replicated online.

What are the advantages of having a major department store in a regional shopping center?

A major department store acts as an anchor tenant, drawing significant customer traffic that benefits the surrounding smaller retailers. This symbiotic relationship helps increase overall footfall and sales for the entire shopping center.

How does the size of a regional shopping center compare to a strip shopping center?

Strip shopping centers are significantly smaller, typically less than 30,000 square feet, and consist of a row of stores with limited parking space directly in front. In contrast, regional shopping centers are much larger and offer more diverse shopping and parking options.

Strip Shopping Center

A smaller retail complex, usually less than 30,000 square feet, consisting of a row of stores with direct access to individual stores from a shared parking lot.

Neighborhood Shopping Center

A retail center that serves the local neighborhood, usually ranging from 30,000 to 150,000 square feet, and often anchored by a supermarket.

Community Shopping Center

A medium-sized retail center, typically 100,000 to 300,000 square feet, that serves a larger area than neighborhood centers and includes a mix of large anchors and small stores.

Super-Regional Center

A large shopping center, over 800,000 square feet, featuring multiple anchor stores, extensive retail options, and various services designed to attract customers from a wide geographic area.

Online References

Suggested Books for Further Studies

“Shopping Center Management and Leasing” by Richard Muhlebach
“Advanced Principles of Commercial Real Estate” by Mike E. Miles, Laurence M. Netherton, and Adrienne Schmitz
“Retail Real Estate: How to Management and Leasing Self-Study Course” by Urban Land Institute
“Retail Development” by Robert F. Gibbs

Fundamentals of Regional Shopping Centers: Real Estate Basics Quiz

### Which of the following is a key feature of a regional shopping center? - [ ] It has under 100,000 square feet of shopping space. - [x] It includes at least one major department store. - [ ] It caters exclusively to local shoppers. - [ ] It is smaller than a community shopping center. > **Explanation:** A key feature of a regional shopping center is the inclusion of at least one major department store. These centers typically range from 300,000 to 900,000 square feet and serve a broader customer base. ### How does the size of a regional shopping center compare to neighborhood centers? - [x] A regional shopping center is larger than neighborhood centers. - [ ] They are of the same size. - [ ] A neighborhood center is larger. - [ ] They cater to the same customer base. > **Explanation:** Regional shopping centers, ranging from 300,000 to 900,000 square feet, are larger than neighborhood centers, which typically span 30,000 to 150,000 square feet. ### What is the typical size range for a regional shopping center? - [ ] 100,000 to 200,000 square feet - [ ] 150,000 to 300,000 square feet - [x] 300,000 to 900,000 square feet - [ ] Over 1 million square feet > **Explanation:** Regional shopping centers usually encompass between 300,000 and 900,000 square feet of gross leasable area. ### What kind of anchor tenant is most common in a regional shopping center? - [ ] Supermarket - [ ] Furniture store - [x] Major department store - [ ] Local boutique > **Explanation:** Major department stores are common anchor tenants in regional shopping centers, drawing significant customer traffic to the center. ### Compared to strip shopping centers, regional shopping centers: - [ ] Have limited parking space. - [ ] Are typically smaller. - [x] Are significantly larger in size. - [ ] Target a very local market. > **Explanation:** Regional shopping centers are significantly larger than strip shopping centers, which are usually less than 30,000 square feet. ### Which type of shopping center typically features more extensive retail options than a regional shopping center? - [ ] Strip shopping center - [ ] Neighborhood shopping center - [ ] Community shopping center - [x] Super-regional center > **Explanation:** Super-regional centers feature more extensive retail options and services compared to regional shopping centers. ### How do regional shopping centers typically attract customers? - [ ] By providing limited parking - [ ] By offering a small selection of stores - [x] By including major department stores and a diverse mix of retailers - [ ] By being predominantly open during weekends > **Explanation:** Regional shopping centers attract customers by including major department stores and offering a diverse mix of retailers and services. ### What is one advantage of having a major department store in a shopping center? - [ ] It reduces the shopping center's size. - [x] It attracts more customers. - [ ] It limits the variety of stores. - [ ] It reduces parking needs. > **Explanation:** Major department stores attract more customers, benefiting all retailers within the shopping center. ### Community shopping centers typically range in size from: - [ ] 20,000 to 50,000 square feet - [ ] 50,000 to 100,000 square feet - [x] 100,000 to 300,000 square feet - [ ] Over 500,000 square feet > **Explanation:** Community shopping centers typically range from 100,000 to 300,000 square feet. ### Which organization provides resources and support for the shopping center industry? - [ ] ICSC - [ ] GARP - [ ] PMI - [x] All of the above > **Explanation:** The International Council of Shopping Centers (ICSC) provides resources and support for the shopping center industry.

Thank you for exploring the extensive realm of regional shopping centers and testing your knowledge with our comprehensive quiz. Keep enhancing your learning in commercial real estate!