Strip Mall Ownership
One of the unexpected truths of the industrial age is that people enjoy shopping. They enjoy picking things up, and comparing them; it’s all the pleasure responses from being hunter-gatherers, without having to watch out for leopards or hyenas. The modern extension of this is retail space that packs a lot of retailers together in close proximity. We’ve all seen this pattern – it’s the shopping mall or strip mall.
The strip mall is a solid vehicle for commercial real estate investment, provided you’re in a part of the country with significant and real job growth. Current figures show that occupancy rates are increasing, with a nationwide vacancy rate of under 8%, and a number of hot markets under 3%. What this means is that you can expect over 90% occupancy rates through most of the urban areas of the country (it’s harder to fill rural strip malls, so be warned), and expect on average about 15% churn (new tenants moving out and being replaced) per year. Over the last year, strip mall rents have risen by between 1 and 6%, depending on the market, outstripping inflation, and making them a prime candidate for a buy-and-hold strategy.
Strip malls are a poor choice for a buy-and-flip real estate investor, so make sure that one fits your overall investment strategy. A good strip mall produces a revenue stream that’s fairly even, but won’t give much more than a 5-6% annual rate of return on your investment. Like all rental properties, you are dependent on the cycle of job growth and the local humps and bumps of the economic cycle; make sure that your rental income is generating a significant cash flow even at low levels of occupancy, because economic news and job creation and loss, like the tides, will ebb and flow, and they’re your bread and butter indicator for how to plan with your investment.
Cities that have grown out, rather than up, such as Houston, are good candidates for strip mall ownership. If you’re constructing a new facility rather than buying an existing one, do what you can to drum up clients before the mall is completed; when you know when the doors are open, you’ll want to have at least one or two “anchor” businesses in the mall immediately. (An anchor business is generally a large national chain, usually electronics or clothing driven, depending on the demographic chosen).
Strip mall and shopping center design is a mixture of planning and artistry. Look at your local demographic trends, and consider all your options. One of the newer trends in shopping centers are what are called lifestyle centers. Catering to people who are looking for entertainment options as well as shopping, lifestyle centers offer theaters, restaurants beyond the basic food court, and are laid out with a wider array of parking options are a fast growing trend. Many are more open air, and a number of cities (like Philadelphia and Houston) offer grants for making some of your shopping center into parkland. Focus on who you want to come to your center, and build relationships with businesses that will pull in those customers for you.
Recall that shopping centers are, in today’s hectic world, family centers, and plan appropriately. If you have a suboptimal space (one that’s hard to rent, and every mall has at least one), consider leasing it at cost (or marginally above) to the YMCA or another charitable organization that provides facilities for children with some modicum of supervision. The loyalty you build from harried parents for your other tenants will be greatly appreciated if your mall has a place where children can be sent to play that’s safe and well lit while they go and shop without having to mind them.
Don’t overlook the cultural opportunities for a shopping center; many of the layout arrangements that make for aesthetically pleasing, friendly shopping experiences can also be used for small open air concerts or small theater productions; in addition to pulling more customers into the mall, it’s a point of differentiation that, in a world where over 800 shopping centers, totaling 106 million feet of floor space were opened last year, is critical.
Ultimately, your shopping center is an investment in your community, and an investment you get a solid return on.
Surviving the Mall – Shopping With Kids
At its best, going to the mall can be a relaxing and enjoyable experience, one where you have a chance to browse at your leisure, relax in the food court and sip a cup of cappuccino, and people-watch to your heart’s content. Once your kids enter the picture, though, your leisurely shopping experience can turn into a race against the clock, with you dashing in and out of mall stores before your toddler throws a tantrum or your pre-teen sulks in embarrassment at her mom’s poor taste.
The pressure you feel increases exponentially when you’re trying to find bargains and deals. You need time to search for the discount you want, and the distractions from your kids can keep you from finding those bargains on shoes or the deals on gifts.
When your kids are with you, your shopping mall experience doesn’t have to be bedlam. Here are a few tips to keep them occupied while you cruise the mall for the discount you’re looking for.
Under 6 years old: When you’re going to the mall with preschoolers, the key is to shop early and to keep the trip short. Tired kids are cranky kids, so it’s best to take them to the mall when they’re happy and alert. If possible, keep your preschooler in a stroller so he won’t wander off and you can concentrate on finding the bargains you need. Keep a special stash of toys in a box at home, and bring them with you so he can play while you shop. The novelty of playing with special toys will keep him occupied. Promise him a reward – riding the merry-go-round at the mall, for example – if he behaves while you’re at the mall.
Six to 10 years old: Kids who are a little older can better understand rewards for good behavior, so offer something tangible (lunch at the food court) or intangible (two hours of uninterrupted one-on-one time) in exchange for good behavior. When you’re looking for deals, you need to concentrate, so be sure your child has something to do. There’s no shame in letting your son bring his GameBoy Advance into the store, parking him where he’s in your line of vision, and letting him play his game while you shop.
Eleven and older: Tweens and teens have their own ideas about what’s fun and cool. Ask yours to invite a friend to the mall, and then allow them to roam the store on their own. Be sure that the tweens don’t get too far away, but give them their space. They’ll be grateful and you’ll have the time you need to look for those deals.
These strategies are great for malls, but they also work if you’re going to a flea market or street fair.
Of course, there’s another option for finding great deals, and you don’t have to bring the kids along. Let your fingers do the clicking and find an Internet shopping mall. An Internet mall has virtually everything that a brick and mortar mall has, and frequently offers everything from clothing to gifts at near-wholesale prices. With an Internet shopping mall, you don’t have to dress up, you don’t have to find a parking place and – best of all – you don’t have to worry about the kids.
Enhance Your Shopping Mall Security Surveillance With IP Cameras
Shopping malls have a high volume of criminal activity due to the high volume of consumers who pass through their halls daily, and due to the large quantity of employees that are present within each of the retail establishments. To protect such a wide variety of areas and locations, shopping malls and the individual retail stores within them require surveillance systems for protection against theft. One of the most popular types of surveillance cameras used within shopping malls is the IP camera.
The Benefits of the IP Surveillance Cameras
With the looming concern of protecting retail establishments and the customers who walk through their doors, shopping malls install a variety of surveillance systems. Here are some of the primary benefits of installing an IP camera system within a shopping mall:
Theft Reduction- With proper surveillance systems installed throughout the mall, theft can be prevented. Visible IP cameras can also proactively work to reduce crimes that occur in shopping malls.
Provide Increased Customer Safety- Consumers want a safe environment to purchase products and services within when they visit shopping malls. IP camera surveillance systems can offer peace of mind to consumers who frequent the locations.
Reduce Retail Employee Theft- In addition to protecting consumers, IP camera systems can also proactively reduce employee theft. Visible IP camera systems within each retail establishment will often deter employees from stealing merchandise or cash from the registers while they are on duty.
Why Choose the IP Camera System over Other Surveillance Options?
If you are ready to install or upgrade your current surveillance system, you will notice that you have a variety of options to select from. Why should you choose the IP camera system for your shopping mall?
Here are some of the primary features of the IP camera surveillance system:
The IP cameras offer the ability to view activities within the shopping mall or within each individual retail establishment from anywhere in the world over the Internet
The IP camera has the ability to record and transfer data over the Internet to any designated PC
Control functions can be accessed over the Internet
It is a wireless system, making it easier and more affordable to install
It is powered over the Ethernet, making it more affordable to install
Many of the cameras come standard with motion detector functionality
Some offer intelligent surveillance, recording only when motion is detected
Email or SMS notification when motion is detected within the business or shopping mall
Installing your Shopping Mall’s IP Camera System
Now that you have selected the IP camera system to install within your shopping mall, you need to determine what the best locations are for installation of the individual cameras. Consider the following locations when developing your shopping mall surveillance strategy:
Every entrance and exit
All public areas such as food courts and lobbies
Hallways and pathways between businesses, loading docks or to and from public restrooms
Parking garages
Parking lots
Delivery areas or loading docks
Copyright (c) 2009 Wes Fernley