Definition
A shopping center is a consolidated space that houses multiple retail establishments with a shared parking area. It typically features a mix of smaller retail outlets and larger anchor stores like department or discount stores and can often include enclosed malls or walkways that connect the stores. Shopping centers became particularly popular post-World War II, serving as a major alternative to traditional downtown retail hubs.
Examples
- Suburban Strip Mall: A small-scale shopping center featuring various retailers, often including grocery stores, convenience stores, beauty salons, and fast-food restaurants, with ample parking lots directly outside the stores.
- Regional Shopping Mall: A larger shopping center that includes well-known department stores, a variety of retail shops, dining options, and entertainment facilities like cinemas, usually enclosed and climate controlled.
- Lifestyle Center: A modern variation of the shopping center combining retail stores with leisure facilities such as parks, walkways, and open-air plazas that cater to a specific demographic seeking a blend of shopping and lifestyle amenities.
Frequently Asked Questions
What is the main purpose of a shopping center?
The main purpose of a shopping center is to provide a wide range of retail options in one convenient location, often bolstering suburban development by offering easy access and plentiful parking.
What are anchor tenants in a shopping center?
Anchor tenants are large, well-known stores designed to attract the bulk of customer traffic to a shopping center, thereby increasing the likelihood of visits to smaller adjacent stores.
How do shopping centers differ from malls?
Shopping centers can be either open-air or enclosed and may include clusters of stores with large parking areas. Malls are typically larger, fully enclosed complexes with interconnected pathways and a wider variety of retail and entertainment options.
What are some advantages of shopping centers for retailers?
Retailers benefit from shopping centers through increased foot traffic generated by anchor stores, shared marketing efforts, and generally more accessible locations compared to standalone stores.
How do shopping centers impact local communities?
Shopping centers can bolster local economies through job creation, boost tax revenues, provide convenient shopping destinations, and can serve as focal points for community activities and events.
Related Terms
- Anchor Tenant: The primary, large-scale tenant in a shopping center, intended to draw significant customer traffic.
- Mall: A large, often enclosed shopping center with various stores, entertainment options, and dining facilities.
- Urban Land Institute: A non-profit organization providing leadership in the responsible use of land and in creating and sustaining thriving communities.
- Gross Leasable Area (GLA): The total floor area designed for tenant occupancy and use, including any basements or mezzanines.
- Institute of Real Estate Management (IREM): An international organization providing professional development and resource sharing for real estate management industries.
- National Retail Federation (NRF): The world’s largest retail trade association representing retailers of many types and sizes, including department stores, specialty shops, and various formats.
Online Resources
- Urban Land Institute: https://uli.org
- Institute of Real Estate Management: https://www.irem.org
- National Retail Federation: https://nrf.com
References
- Urban Land Institute. (1999). Shopping Center Development Handbook (3rd ed.). Washington, DC: Urban Land Institute.
Suggested Books for Further Studies
- “Shopping Center Development and Investment” by John Ratcliffe, et al.
- “Retail Development” by Roy Dickinson and Christopher B. Leinberger
- “The Complete Guide to Property Development for the Small Investor” by Catherine Dawson
- “The Shopping Mall High School: Winners and Losers in the Educational Marketplace” by Arthur G. Powell
Real Estate Basics: Shopping Center Fundamentals Quiz
### What is a shopping center?
- [ ] A type of standalone store
- [x] A collection of retail stores with a common parking area
- [ ] An office complex with shopping facilities
- [ ] A residential area with a few stores
> **Explanation:** A shopping center is defined as a collection of retail stores that share a common parking area, often with one or more large department, discount, or food stores.
### What do anchor tenants do for shopping centers?
- [ ] Decrease overall traffic
- [ ] Provide landscaping services
- [x] Attract customer foot traffic
- [ ] Manage security operations
> **Explanation:** Anchor tenants are major tenants like large department stores that attract significant customer traffic, which benefits smaller stores in the shopping center.
### How did shopping centers impact suburban development after World War II?
- [ ] Reduced shopping convenience
- [x] Provided a strong alternative to downtown retail centers
- [ ] Limited retail variety
- [ ] Increased traffic congestion without benefits
> **Explanation:** After World War II, shopping centers provided a range of stores with easy access and ample parking, becoming a strong alternative to traditional downtown retail centers as populations moved to the suburbs.
### What is the total floor area designed for tenant occupancy in a shopping center called?
- [ ] Net leasable area
- [ ] Occupant capacity
- [ ] Parking footprint
- [x] Gross leasable area
> **Explanation:** Gross leasable area (GLA) is the total floor area of a shopping center designed for tenant occupancy and use.
### Which organization provides leadership in creating and sustaining thriving communities and responsible land use?
- [ ] Institute of Real Estate Management
- [x] Urban Land Institute
- [ ] National Retail Federation
- [ ] Better Business Bureau
> **Explanation:** The Urban Land Institute is a non-profit organization that provides leadership in the responsible use of land and in creating and sustaining thriving communities.
### What distinguishes a mall from other types of shopping centers?
- [x] It is fully enclosed with interconnected pathways
- [ ] It has no large anchor tenants
- [ ] It lacks common parking areas
- [ ] It is always an open-air facility
> **Explanation:** Malls are typically large, fully enclosed shopping centers with interconnected pathways, a variety of retail shops, entertainment options, and dining facilities.
### What advantage do individual retail stores gain by being located in a shopping center?
- [ ] Increased competition
- [x] Increased foot traffic and shared marketing efforts
- [ ] Decreased parking space
- [ ] Individual marketing efforts
> **Explanation:** Retailers benefit from increased foot traffic generated by anchor stores, along with shared marketing efforts that draw more customers to the shopping center.
### What is a lifestyle center?
- [ ] A remote residential complex
- [ ] An outdated retail format
- [x] A modern shopping venue that blends retail with leisure and lifestyle amenities
- [ ] A type of warehouse
> **Explanation:** A lifestyle center is a modern variation of a shopping center that combines retail stores with leisure and lifestyle amenities, such as parks and open-air plazas.
### What does GLA stand for in the context of shopping center properties?
- [ ] General Lease Area
- [x] Gross Leasable Area
- [ ] Group Layout Area
- [ ] Grand Living Area
> **Explanation:** GLA stands for Gross Leasable Area, which refers to the total floor area designed for tenant occupancy and use in a shopping center.
### Which organization represents retailers of many types and sizes?
- [ ] Urban Land Institute
- [ ] Institute of Real Estate Management
- [x] National Retail Federation
- [ ] American Retail Merchants Association
> **Explanation:** The National Retail Federation (NRF) is the largest retail trade association representing various types and sizes of retailers.
