Strip Malls Are Strong Performers in the Real Estate Segment
The internet has changed the retail landscape and sent a shock-wave through in-person stores. Considered by younger generations to be obsolete, many malls and large-scale retail stores are closing. However, one type of retail has managed to weather the online storm: strip malls.
How have these real estate segments risen to prominence as other, more glamorous areas have fallen? The answer is complex, with many different factors.
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Resistant to eCommerce
Many businesses that set up shop in strip malls are ecommerce-resistant. This includes many service-based businesses such as hair and nail salons, restaurants and tanning services. Grocery stores also proven e-commerce proof in addition to providing fertile ground for other retailers to grow.
Increasing Population
Neighborhoods have filled in around these shopping plazas, providing easy access for new customers. With a steady supply of clients moving into the area, this specific type of real estate is able to thrive.
Related article: Strip Malls’ Success Proves Retail Isn’t Dead
Changing Medical Landscape
It’s not just customers that are making the move; some providers, specifically in the medical sector, are choosing to set up shop where patients live. This “medtail” industry includes MRI facilities, physical therapy centers, and other outpatient clinics. By moving to a strip mall, these healthcare providers hope to be more accessible to patients that need their services but struggle with transportation. A strip mall is the perfect real estate to fulfill this goal.
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Wide Variety
Despite the lack of glamour, a strip mall has a lot to offer many different industries. The location and layout typically make it easy for many types of shops to exist next door to each other. In fact, you can see smartphone shops, insurance agencies, discount retailers and family entertainment options all within a hundred feet of each other. With Casey Funding, you have many commercial real estate financing options to start this venture.
Higher Demand for Drive-Thrus
Many people live fast-paced lives and the demand for convenience has grown as a consequence. Drive-thrus are a popular convenience for food and beverages, which has given rise to this option being offered by restaurants that traditionally haven’t in the past. A strip mall often has buildings where a drive-thru can be easily added.
Altered Consumer Behavior
Going online isn’t the only way consumers have changed their purchasing behavior. People interact with food differently due to the easy access to health information and the social elevation of food by television shows. Diners are also more likely to seek casual dining experiences. This has led to a rise in both casual restaurants and super grocers, which easily find homes in strip malls.
If you’re interested in finding out more information about commercial financing for a strip mall or other property, please contact us today.
