From Neighborhood to Lifestyle: Which Shopping Center Type is Right for You?

Choosing the right shopping center can be a game-changer for your success as a business owner or commercial real estate investor. Shopping centers come in different sizes and types, each catering to different market segments. This article will delve into the various types of shopping centers and explore their unique features and sizes.

Neighborhood Centers (50,000 to 150,000 square feet)

Neighborhood centers are small-scale shopping centers typically anchored by a grocery store or a drugstore. They serve the local community within a two to three-mile radius. Neighborhood centers have a mix of tenants offering everyday necessities like food, pharmacy, and convenience items. They typically have a size ranging from 50,000 to 150,000 square feet, and the surrounding demographics usually determine their tenants' mix.

Community Centers (150,000 to 350,000 square feet)

Community centers are larger than neighborhood centers and have a wider range of tenants. They are anchored by a large retailer like a department store and attract shoppers from a five to ten-mile radius. Community centers offer a mix of shopping, dining, and entertainment experiences. They typically have a size ranging from 150,000 to 350,000 square feet and are located at major intersections or near residential areas.

Regional Centers (400,000 to 800,000 square feet)

Regional centers are large-scale shopping centers that serve a larger market area of up to a 20-mile radius. They have multiple anchors, such as department stores, supermarkets, and specialty retailers. They also include a wide range of tenants. Regional centers offer a mix of shopping, dining, and entertainment experiences. They typically have a size ranging from 400,000 to 800,000 square feet and often include a variety of amenities such as cinemas, health clubs, and spas.

Power Centers (250,000 to 600,000 square feet)

Power centers are large shopping centers with a cluster of big-box stores like home improvement stores, discount department stores, and warehouse clubs. They are located in areas with high traffic and are typically accessible by major highways. Power centers are designed to attract price-conscious shoppers who are looking for a one-stop shop for their shopping needs. They usually have a size ranging from 250,000 to 600,000 square feet.

Lifestyle Centers (200,000 to 500,000 square feet)

Lifestyle centers are upscale outdoor shopping centers that offer a unique shopping and entertainment experience. They are designed to resemble a small town center with pedestrian-friendly walkways and open-air spaces. Lifestyle centers feature a mix of high-end retailers, restaurants, and entertainment venues, such as cinemas and theaters. They attract affluent shoppers who seek a high-end shopping experience. They typically have a size ranging from 200,000 to 500,000 square feet.

When choosing the right shopping center, several factors come into play, including the size of the center, the tenant mix, the location, and the surrounding area's demographics. By understanding the different types of shopping centers and their typical square footage, you can make an informed decision that aligns with your investment or business needs.