Neighborhood And Specialty Shopping Centers
Neighborhood shopping malls are often strip centers of 100,000 square feet or less with traffic generated frequently by a grocery and a drug store. The meals store and, to a smaller extent, the pharmacy generally are destination shopping stores that pay lower rent but generate high traffic. Local tenants pay higher rents, have an increased profit percentage but lower sales per square foot, and rely somewhat on impulse buying. It really is interesting to notice that in the 2001 edition of the analysis to define the 10 forms of retailers frequently situated in neighborhood centers, the next most noted retailer was the supermarket (food) store. This retailer had fallen to tenth position by 2004. Restaurants with and without liquor service along with junk food carryout restaurants moved significantly up the list by 2004, reflecting the trend toward increased usage of from the home eating. Furthermore, a lot more food retailers gravitated in the late 1990s toward fewer but larger stores often situated in regional and super-regional centers.
The mix is comparable, however, not identical, compared to that of the city shopping mall.
Specialty shopping malls generally occupy significantly less than 50,000 square feet and so are dominated by local retailers. Most are situated in business areas such as for example office complexes and hotel or convention areas. Most feature restaurants and retailers with high income that sell high-fashion clothing, costly gifts, or books. The shops generally are small and also have limited hours of operation. The majority of their sales are created during lunch hours, the time soon after work, and--if the shops are open before normal office hours--in the morning. The most recent popular specialty shopping areas can be found at the destination points of rapid transit systems in cities like Washington, D.C., Atlanta, and SAN FRANCISCO BAY AREA. The high-traffic hours before and after work generate the majority of the sales.
Specialty centers usually do not depend on individual retailers to create traffic. Instead, they depend on the positioning or surrounding area to create pedestrian shopping. Tenant turnover is commonly high due to the extremely high rents and, consequently, the high income the tenants must build to their operation. Most specialty centers are tailored to convenience and impulse shopping, that is apt to be curtailed in times of economic distress.