Definition
A shopping center is a property developed for the retailing of goods and services. It typically features a variety of retail shops surrounded by a common parking area and may include one or more significant large stores, such as department stores, discount stores, or supermarkets, which often serve as anchor tenants. These centers can range in size from small strip shopping centers to large super-regional malls.
Types of Shopping Centers
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Strip Shopping Center: Smallest format with a series of retail stores arranged in a row, usually without a central anchor tenant.
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Neighborhood Center: Slightly larger than strip centers, often servicing the local community with a supermarket or drugstore as an anchor.
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Community Center: Bigger than neighborhood centers with anchors like supermarkets, big-box stores, or junior department stores, catering to a greater population.
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Regional Mall: Large enclosed shopping centers featuring major department stores and a variety of retail, dining, and entertainment options.
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Super-Regional Mall: Extremely large malls with numerous anchor tenants, considerable retail variety, and extensive entertainment and dining facilities, drawing visitors from a wide geographic area.
Examples
- Westfield World Trade Center in New York City, features over 100 retail stores and dining options, anchored by major department stores.
- Mall of America in Bloomington, Minnesota, a super-regional mall with over 500 stores, multiple dining options, and an amusement park.
- Greenwood Park Mall in Greenwood, Indiana, a regional mall with four anchor tenants, more than 150 specialty stores, and various dining options.
Frequently Asked Questions (FAQs)
What distinguishes a regional mall from a super-regional mall?
A regional mall typically features two to three anchor tenants along with a mix of smaller retail stores. A super-regional mall has four or more anchor tenants, a wider array of retail stores, and extensive entertainment and dining facilities.
What is an anchor tenant?
An anchor tenant is a major retail store, such as a department store or supermarket, that serves as a primary attraction for the shopping center, drawing significant customer traffic.
Can shopping centers include residential or office spaces?
Yes, modern shopping centers, often called mixed-use developments, may include residential apartments, office spaces, and recreational facilities alongside retail stores.
Why might a retailer prefer a shopping center location?
Retailers often choose shopping centers for their high foot traffic, visibility, accessible parking, and the draw of anchor tenants which increase overall customer base.
Are strip shopping centers different from enclosed malls?
Yes, strip shopping centers are typically open-air with no enclosed walkways, whereas enclosed malls feature indoor walkways connecting the stores.
Related Terms
Anchor Tenant
An Anchor Tenant is a major retail tenant in a shopping center that draws significant foot traffic, benefiting the smaller stores within the center.
Mixed-Use Development
A Mixed-Use Development is a real estate project that combines retail, residential, office, and/or other functions in a single property.
Big-Box Store
A Big-Box Store is a large retail store characterized by its extensive range of products and significant floor space, often serving as an anchor tenant in shopping centers.
Online References
- International Council of Shopping Centers (ICSC)
- National Retail Federation (NRF)
- Urban Land Institute (ULI)
Suggested Books for Further Studies
- “Shopping Centers and Other Retail Properties” by John R. White and Kevin D. Gray
- “Shopping Center Management and Leasing” by Donald Theodore LaFave
- “Retail Development” by Patrick D. O’Connor
Fundamentals of Shopping Centers: Real Estate Basics Quiz
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