For the last 10 years, leasing a store in a mall was basically a death sentence for the traditional retail operation. With online shopping growing immensely in popularity, many no longer saw the need to go to a physical store to make their purchases.
And now, with the pandemic, the modern mall has taken an even bigger hit due to social distancing guidelines.
As a retail business owner, you may be wondering – why lease a space in a mall anymore? Here’s what you need to know.
Malls That Have Pivoted Are Still Successful
The malls that are still around are proving to be consistently successful. Many properties have reinvented themselves by turning department stores into major medical centers or have given away part of the mall property for residential development to build apartments or have added new non-traditional users. Malls that have made these types of changes are proving to be long-lasting and promising investments.
The apartments make the mall a convenient place for residents to shop, eat, and even work remotely. As more and more companies are allowing remote work, people still want connection. When people use areas in the mall as a co-working space, they are more likely to frequent your business, as well.
Leasing Is Inexpensive
Leasing space in today’s malls is a less expensive opportunity due to a lack of retail demand. If your business is just getting started and you do not have the capital to invest in retail space, leasing a spot in the mall might be the best option. The prices are low, and it’s easy to get in, which will save you both time and money.
However, as mentioned above, make sure that you choose your space wisely. Leasing space in a dying mall that hasn’t invested in moving into a new era won’t do you any favors. Look for the malls that are making changes and finding ways to reach consumers.
Reach A Diverse Customer Base
Successful malls and successful opportunities are dependent upon the mix within the malls. When people choose to spend the day walking around the mall, shopping, eating, or just “window shopping,” they want to see a diverse selection of stores. With this said, if the mall offers a large, diverse number of uses, it will attract more customers.
However, the prime locations to look for are the ones in the main mall, as close to the mall’s center as possible. Landing a spot in that area will ensure that you get more organic foot traffic. If you find yourself in a far wing of the mall, fewer people will wander in and may only visit your business if they already know that it’s there.
In conclusion, leasing a space in the mall can be a great opportunity, as long as you do your research first.
Lease Your Ideal Mall Space with TD&A
At TD&A, your success is our number one priority. It’s why we offer industry-leading boutique-level service, one-to-one consultation, a reliable single point of contact throughout the entire process, and full access to our deep network of industry relationships. Our customer’s needs have inspired more than half a century of growth and transformation, all of which enable us to service the entire life cycle of your CRE portfolio expertly.