Article by Rebecca Kramer
This is the second of a two-part article regarding major retail property types.
In searching for retail for sale or retail for lease, it is useful to have a basic understanding of the differences between various retail and shopping center types. In this second of a two-part article, we note the major characteristics of major retail property types.
Apart from Community and Lifestyle Retail Centers covered in part one, we also have retail spaces like Neighborhood Retail Centers, Outlet Retail Centers & Specialty Theme / Festival Centers which have a strong foothold in the retail space scene.
Outlet Retail Centers:
Outlet retail centers consist primarily of manufacturers’ and retailers’ outlet stores selling brand-name goods at a discount. The majority of outlet centers are open-air (not enclosed) and configured either in a strip or sometimes with groups of stores clustered in a “village”-type format. They range in size from 50,000 square feet to 400,000 square feet.
Neighborhood Retail Centers:
Neighborhood shopping centers are designed to provide convenience shopping for the day-to-day needs of consumers in the immediate neighborhood. They are usually located along major commuter routes and other high traffic areas. Most retail properties of this type include a supermarket and many also have a drugstore. A neighborhood retail center is usually configured as a straight-line strip with no enclosed walkways and surface parking facing the stores. They range in size from 30,000 square feet to 150,000 square feet.
Power Retail Centers:
Power centers are dominated by several large big-box anchors, including discount department stores, off-price stores, electronics or appliance super stores, warehouse clubs, or “category killers”, i.e., stores that offer a vast selection in related merchandise categories at very competitive retail prices. The stores may be connected or freestanding and usually include a minimum number of small specialty tenants. The size of these commercial properties ranges from 250,000 square feet to 600,000 square feet.
Strip/Convenience Retail Centers:
Similar to community retail centers only smaller in size, convenience retail centers (or strip centers as they are sometimes called) feature a row of stores or service outlets managed as a single retail entity, with on-site parking usually located in front of the stores. The stores may be configured in a straight line, or have an “L” or “U”shape. A convenience retail center is among the smallest of shopping centers. They measure 30,000 square feet or less and include a small convenience store anchor such as 7-Eleven or other mini-mart.
This is the second of a two-part article on major retail property types. Miss part one? You can read it http://www.articleblast.com/Real_Estate/Commercial/Shopping_for_Retail_Space?__Retail_Property_Comes_In_All_Shapes_and_Sizes_-_I/here.
About the Author
Rebecca Kramer is a well known Real Estate Manager who provides valuable insights on Commercial Property Trends & Listings. She regularly writes about the various investment opportunities incommercial properties.
