Shopping Centers

INVESTING IN SHOPPING CENTRES

Malls have been a cornerstone of American culture for decades. From the consumer’s perspective, they’re a centralized, convenient place to shop. Many of them tailor the customer experience to be more enjoyable than going to a regular store. While not as ubiquitous as they once have been, a shopping center can still offer an interesting investment opportunity. Like any other investment, there are a few things you need to know.

Understand what you’re investing in
Location is the most crucial thing to research when considering an investment. This goes double for a shopping center. The right location can make or break a mall. It needs to be accessible. It needs to be near the right clientele, and convenient for them. If it’s near their favorite movie theatre, they’re more likely to make a quick stop. Look for nearby highways and what kind of neighbors the mall has. You’ll get a pulse of the local economy, as well as an idea of how busy your potential investment will be. Area demographics should be an important part of your research as well. Spending habits are vastly different for baby boomers than for millennials. Make sure the mall you’re looking at is designed for the local market.

Times are Changing
Before investing in a shopping center, it’s important to understand that the golden age of the mall is behind us. Spending habits have changed, thanks in no small part to online shopping giants like Amazon. In a world where it’s possible to get just about anything without leaving the couch, a sprawling commercial space that’s a drive away might not seem as appealing. This doesn’t necessarily mean investing in a shopping center is a losing proposition. Rather, you have to include some extra deliberations before choosing your investment. Is the mall you’re investing in tailored to a clientele that’s less inclined to use online stores? Is the mall designed around giving a customer experience that’s only possible in a physical store? Many malls have integrated entertainment facilities into their construction; this gives possible customers more of an excuse to visit. That’s always a good thing.