Five Types of Tenants and Retail Buildings for Real-Estate
Want the best real estate investment and property management? If yes, please learn how to calculate the risks and cash flow. Being aware of the retail assets and common tenant mixes for every space can help.
There are several myths about retail assets. The myths are about property names and what type of tenants occupies every property.
For instance, the general public and the mainstream media refer to properties like strip malls. There is no such thing as a strip mall, but more on that later.
Mentioned below are retail property types, along with tenants each can expect. Please check them out now.
Malls are the easiest to pinpoint on the retail landscape. Did you know most of them use RFID for inventory? Or in other words, they use RFID technology for tracking where their assets are at different times of the day.
In a mall, the stores are generally under a roof. Malls also have food courts. Now, full-service restaurants are also becoming common. The size starts at 400,000 sq. feet. How large can a mall be is still not determined.
The largest mall in recent times is New South China Mall, located in Dongguan. Its area is 7.1 million sq. feet.
Often called outlet malls, which is wrong, most people can identify factory outlets. They are run by well-known brands, ranging from luxury to mid-priced. The food choices are generally limited.
Factory outlets are between 55,000 to 400,000 sq. feet. They go larger in high-tourism places.
200,000 sq. feet and up, power centers are usually home to approximately three big-box stores. These include specialty chains, home-improvement retailers, and discounters. Think Home Depot, Walmart, Dick’s Sporting Equipment, and Best Buy.
Power centers contain small tenants, generally a mix of regional or national brands and convenience services. Eateries and fast-food chains are found on the pad sites.
Power centers are an exceptional investment if they are located near the major highways and have powerful anchor tenants who will meet long-term leases.
Community centers range between 130,000 sq. feet and 500,000 sq. feet. They have two anchor tenants, at least. They can have discounters and big specialty shops along with convenience retailers. Examples include dry cleaners, drugstores, tailors, and mobile phone stores.
Community centers have mom-and-pop businesses that do not have a great reputation. They pose a high risk for the investors and lenders.
Strong anchor tenants can decrease this risk.
A mixed retail space is a retail store and a multifamily residential building or office. The retail store is on the ground floor, and other buildings are on the floors above.
Mixed retail is quite common in the suburbs. They are also emerging near the huge metropolitan hubs.
Mixed retail is perfect for people who love the idea of walkable and environmentally conscious communities.
The experts offering RFID management software solutions said some retail buildings do not fit into the categories above. But they are important to the commercial real estate industry.
They include experiential retail stores like movie theaters and furniture stores, and freestanding retail stores. There is again retail geared towards the travelers and tourists found in airports and entertainment destinations.