Regional Shopping Center

Definition

A Regional Shopping Center is a type of retail development designed to cater to a wide geographic area, typically containing 300,000 to 900,000 square feet of retail space, with at least one major department store acting as an anchor tenant. These centers aim to offer a broad array of goods and services and often feature a mix of retail tenants, entertainment options, and dining establishments to draw in large numbers of shoppers.

Examples

South Coast Plaza (Costa Mesa, California): With around 2.8 million square feet of retail space, South Coast Plaza includes luxury and fashion brands, several department stores, and fine dining options.
King of Prussia Mall (King of Prussia, Pennsylvania): One of the largest malls in the United States, featuring major department stores like Nordstrom and Macy’s, and a multitude of specialty stores and eateries.

Frequently Asked Questions (FAQs)

What is the difference between a Regional Shopping Center and a Superregional Shopping Center? A: While a Regional Shopping Center typically contains 300,000 to 900,000 square feet of retail space, a Superregional Shopping Center exceeds 800,000 square feet and generally has a broader variety and quantity of retail offerings.

How does an anchor tenant impact a Regional Shopping Center? A: Anchor tenants, such as major department stores, are crucial as they draw a substantial number of shoppers, thereby benefiting smaller retailers within the center through increased foot traffic.

What is the average distance people are willing to travel to a Regional Shopping Center? A: Shoppers are generally willing to travel 10-30 miles to visit a Regional Shopping Center, depending on the uniqueness and diversity of retail offerings.

Anchor Tenant: A major retailer, such as a department store or supermarket, that serves to attract customers to a shopping center.
Superregional Shopping Center: A larger variation of a regional shopping center with more than 800,000 square feet of retail space, aimed at drawing customers from a much larger area.
Community Shopping Center: A smaller retail center, typically 100,000 to 400,000 square feet, serving the local community with a mix of tenants like grocery stores, specialty shops, and service providers.
Lifestyle Center: An open-air shopping area that combines retail with entertainment and restaurant options in a more experiential environment.

Online Resources

International Council of Shopping Centers (ICSC): Industry association providing research, resources, and events for shopping centers.
Urban Land Institute (ULI): Provides publications and webinars about real estate development including shopping centers.
National Real Estate Investor: Offers news and analysis about commercial real estate trends, including retail developments.

References

International Council of Shopping Centers. (2020). Shopping Center Definitions.
Urban Land Institute. (2019). Retail Development.
Miller, D. (2018). Transformations in Retailing: The Road Ahead. Retail Property Insights.

Suggested Books for Further Studies

“Shopping Centers and Other Retail Properties” by John R. White and Kevin D. Gray
“Retail Real Estate: Leadership Strategies” by Patrick L. Phillips.
“The Complete Guide to Real Estate Finance for Investment Properties” by Steve Berges.
“Retail Business Kit For Dummies” by Rick Segel.

Real Estate Basics: Regional Shopping Center Fundamentals Quiz

### How large is a typical regional shopping center in terms of square footage? - [ ] 100,000 to 300,000 square feet - [x] 300,000 to 900,000 square feet - [ ] 900,000 to 2,000,000 square feet - [ ] Over 2,000,000 square feet > **Explanation:** A typical regional shopping center contains between 300,000 to 900,000 square feet of retail space. ### What is a defining characteristic of a regional shopping center? - [x] Presence of at least one major department store - [ ] It only contains high-end retail stores - [ ] It primarily focuses on entertainment - [ ] It must have an attached residential area > **Explanation:** A defining characteristic of a regional shopping center is the presence of at least one major department store which acts as an anchor tenant. ### What is the primary role of an anchor tenant in a regional shopping center? - [ ] To provide security for the mall - [x] To draw significant customer traffic - [ ] To manage the mall - [ ] To fund all marketing activities > **Explanation:** An anchor tenant, such as a major department store, draws significant customer traffic, benefiting smaller retailers in the shopping center through increased foot traffic. ### Over what distance are consumers generally willing to travel to a regional shopping center? - [ ] 10-15 miles - [x] 10-30 miles - [ ] 30-50 miles - [ ] Only within their own neighborhood > **Explanation:** Consumers are generally willing to travel 10-30 miles to visit a regional shopping center, depending on the variety and attractiveness of the retail offerings. ### Which one of the following is NOT typically a part of regional shopping center facilities? - [ ] Department stores - [ ] Restaurants - [ ] Specialty shops - [x] Office spaces for non-retail businesses > **Explanation:** Regional shopping centers typically focus on retail stores, including department stores, restaurants, and specialty shops, rather than office spaces for non-retail businesses. ### How is a Superregional Shopping Center different from a Regional Shopping Center? - [ ] Superregional centers are closed during weekends - [ ] Superregional centers do not allow any food outlets - [x] Superregional centers have over 800,000 square feet of retail space - [ ] Superregional centers do not have any anchor tenants > **Explanation:** Superregional Shopping Centers exceed 800,000 square feet of retail space, offering an even broader variety of retail choices compared to Regional Shopping Centers. ### What type of retail development is generally smaller than a Regional Shopping Center? - [ ] Superregional Shopping Center - [x] Community Shopping Center - [ ] Power Center - [ ] Lifestyle Center > **Explanation:** A Community Shopping Center, typically 100,000 to 400,000 square feet, is smaller than a Regional Shopping Center. ### What sort of retail mix is commonly found in regional shopping centers? - [x] Department stores, specialty shops, and restaurants - [ ] Only luxury retailers and fine dining - [ ] Exclusive educational centers - [ ] Residential complexes within the shopping center > **Explanation:** Regional shopping centers commonly feature a mix of department stores, specialty shops, and restaurants. ### Why is having at least one major department store a requirement for a Regional Shopping Center? - [ ] To maintain a consistent building appearance - [x] To act as an anchor tenant that attracts a large customer base - [ ] To ensure compliance with local regulations - [ ] To offer overnight lodging for shoppers > **Explanation:** Having a major department store is crucial as it acts as an anchor tenant, drawing a large customer base and benefiting other retailers within the center. ### What role does the International Council of Shopping Centers (ICSC) play in the context of regional shopping centers? - [x] Provides research, resources, and standard definitions for shopping centers - [ ] Provides local building permits - [ ] Manages individual shopping centers - [ ] Supplies retail inventory to centers > **Explanation:** The International Council of Shopping Centers (ICSC) provides valuable research, resources, and standard definitions for shopping center classifications and functions.