Definition
A regional shopping center is a type of retail property characterized by its significant size and diverse mix of retailers. These centers typically encompass 300,000 to 900,000 square feet of gross leasable area (GLA) and include at least one major department store as an anchor tenant. Regional shopping centers are designed to serve a broader market than smaller-scale centers such as strip, neighborhood, or community shopping centers but are smaller than super-regional centers, which offer more extensive retail options and services.
Examples
- Cherry Creek Shopping Center in Denver, Colorado: Covering over 1.1 million square feet, this center includes major department stores like Nordstrom and Macy’s along with a variety of specialty stores.
- The Mall at Rockingham Park in Salem, New Hampshire: With 900,000 square feet of retail space, this mall features anchor stores such as Macy’s and JCPenney.
- Westfield Annapolis Mall in Annapolis, Maryland: This regional shopping center spans 1.5 million square feet, hosting anchors like Nordstrom and Macy’s along with numerous other retail and dining options.
Frequently Asked Questions
What differentiates a regional shopping center from a community shopping center?
A regional shopping center is significantly larger, typically ranging between 300,000 to 900,000 square feet and anchored by one or more major department stores. In contrast, community shopping centers are smaller, usually 100,000 to 300,000 square feet, and do not always feature major department stores.
How do regional shopping centers attract customers compared to other shopping centers?
Regional shopping centers attract customers from a larger geographic area by offering a wider variety of retail stores, dining options, and entertainment facilities. The presence of anchor stores like major department stores also enhances their appeal.
Are regional shopping centers viable in the current retail environment?
While the retail environment is evolving due to the growth of e-commerce, regional shopping centers remain viable by integrating experiential retail, entertainment options, and services that cannot be easily replicated online.
What are the advantages of having a major department store in a regional shopping center?
A major department store acts as an anchor tenant, drawing significant customer traffic that benefits the surrounding smaller retailers. This symbiotic relationship helps increase overall footfall and sales for the entire shopping center.
How does the size of a regional shopping center compare to a strip shopping center?
Strip shopping centers are significantly smaller, typically less than 30,000 square feet, and consist of a row of stores with limited parking space directly in front. In contrast, regional shopping centers are much larger and offer more diverse shopping and parking options.
Related Terms
Strip Shopping Center
A smaller retail complex, usually less than 30,000 square feet, consisting of a row of stores with direct access to individual stores from a shared parking lot.
Neighborhood Shopping Center
A retail center that serves the local neighborhood, usually ranging from 30,000 to 150,000 square feet, and often anchored by a supermarket.
Community Shopping Center
A medium-sized retail center, typically 100,000 to 300,000 square feet, that serves a larger area than neighborhood centers and includes a mix of large anchors and small stores.
Super-Regional Center
A large shopping center, over 800,000 square feet, featuring multiple anchor stores, extensive retail options, and various services designed to attract customers from a wide geographic area.
Online References
- International Council of Shopping Centers (ICSC)
- National Retail Federation (NRF)
- Retail Industry Leaders Association (RILA)
- Urban Land Institute (ULI)
Suggested Books for Further Studies
- “Shopping Center Management and Leasing” by Richard Muhlebach
- “Advanced Principles of Commercial Real Estate” by Mike E. Miles, Laurence M. Netherton, and Adrienne Schmitz
- “Retail Real Estate: How to Management and Leasing Self-Study Course” by Urban Land Institute
- “Retail Development” by Robert F. Gibbs
Fundamentals of Regional Shopping Centers: Real Estate Basics Quiz
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