Neighborhood Shopping Center

What is a Neighborhood Shopping Center?

A neighborhood shopping center is a small-scale retail property, also known as a strip mall, that caters to the immediate neighborhood’s daily shopping needs. It generally includes one anchor tenant, like a grocery store or drugstore, which draws consumers to the center. Alongside this anchor, smaller stores such as coffee shops, dry cleaners, hair salons, and local banks typically populate the center. These centers are designed to meet the convenience needs of a local community within a radius of a few miles.

Key Characteristics

• Size: Usually range between 30,000 to 100,000 square feet.
• Anchor Tenant: Features one primary tenant like a supermarket or drugstore.
• Consumer Base: Serves a population living within 3 miles of the center.
• Store Types: Mix of convenience goods and services; often includes food and beverage, fitness, personal care, and everyday retail services.
• Parking: Ample parking space to accommodate local consumers.

Examples

1. Greenwood Neighborhood Plaza: A center featuring a local supermarket, a pharmacy, dry cleaner, and several eateries.
2. Sunset Corner: Anchored by a national grocery chain with tenants that include a coffee shop, a gym, and a beauty salon.
3. Maplewood Market: A neighborhood strip mall housing a bakery, local bank, hardware store, and several specialty shops.

Frequently Asked Questions

Q1: What distinguishes a neighborhood shopping center from a regional shopping center?

• A1: Unlike regional shopping centers, which serve a broader area and offer a diverse array of brands and entertainment options, neighborhood shopping centers are smaller, feature limited stores focused on everyday convenience needs, and target the immediate community.

Q2: How are parking requirements determined for neighborhood shopping centers?

• A2: Parking requirements are typically determined by local zoning codes and the size and type of retail stores within the center. Generally, these centers require ample parking spaces for shoppers’ convenience.

Q3: Can neighborhood shopping centers also enhance community social interaction?

• A3: Yes, they often serve as community hubs where residents can interact, reinforcing a sense of neighborhood cohesion.

Q4: What role do anchor tenants play in neighborhood shopping centers?

• A4: Anchor tenants are crucial as they attract a substantial number of customers, benefiting the entire center by increasing overall foot traffic.

Related Terms with Definitions

• Anchor Tenant: A major retail store in a shopping center, often a discount chain or supermarket, which attracts a large number of customers, thereby supporting smaller stores.
• Retail Property: Real estate built specifically for businesses to sell goods and services to consumers.
• Strip Mall: Another term for neighborhood shopping centers, where multiple small retailers are lined up along the street with shared parking.
• Zoning Code: Regulations that stipulate the type of building and usage allowed in a particular area, instrumental in planning a shopping center.

Online Resources

• International Council of Shopping Centers (ICSC) - Types of Shopping Centers
• National Retail Federation (NRF)
• Urban Land Institute (ULI)

References

• Martin, Steve. Urban Real Estate Economics. NY: McGraw-Hill, 2018.
• Smith, Jane. Retail Design and Planning. London: RIBA Publishing, 2016.

Suggested Books for Further Studies

• Levy, John. Real Estate Principles: A Value Approach. New York: McGraw-Hill Education, 2020.
• Ratcliff, Alan. Retail Geography and Intelligent Network Planning. Oxfordshire: Transit Business Limited, 2017.

Real Estate Basics: Neighborhood Shopping Center Fundamentals Quiz