If you are interested in commercial real estate investing, there are many types of property you can consider. Retail properties are in high demand today since there is a wide variety of retail commercial property for sale to fit all budget and investment goals. Considering the fact that the U.S. is the world leader in the retail market and accounts for one-fifth of all retail sales today, commercial property investing in various types of commercial spaces can be very lucrative.
Convenience centers are individual store units in local settings designed to serve customers within about one mile of the location. They are the smallest of all commercial property for sale. Convenience locations are stores that are 30,000 sq. ft. or less and consist of stores that do not require an anchor, such as dry cleaners, convenience stores, drug stores, hair salons, and other places designed to provide local services.
Neighborhood centers are larger commercial property investing options that are about 125, 000 sq. ft. in size and house multiple convenience businesses along with a single anchor store, usually a grocery store. These locations typically cater to customers within a 1 to 3 mile radius.
Community centers are larger versions of neighborhood centers, usually referred to in commercial real estate investing as strip malls. These properties include leasable space of between 125,000 and 400,000 sq. ft., a grocery store anchor along with other convenience and specialty stores, and serve a customer base within a 3 to 6 mile range.
Power centers are larger locations that include numerous big-box retailers like Walmart, Home Depot, or Best Buy, with some that include multiple convenience and specialty locations as well. These commercial property investing locations typically have between 250,000 and 600,000 sq. ft. of leasable space and a trade area of 3 to 6 miles.
Lifestyle centers, characterized by their combination of big-box retailers, convenience, specialty stores, and dining establishments, began popping up in the mid-1990’s and have become extremely popular as commercial real estate investments. Serving an area of 8 to 12 miles, the main difference other than their size of up to 500,000 sq. ft. between lifestyle centers and community centers is that they include restaurants that people will visit without the draw of the surrounding retailers.
The largest of all commercial property for sale, malls occupy at least 400,000 and up to 1 million or more sq. ft. of leasable space and serve a customer base up to 25 miles. Malls may be enclosed or open-air, include multiple convenience, specialty, and upscale retailers, multiple restaurants, multiple department store anchors, and frequently a movie theater.
Factory Outlet Centers
Factory outlets are unique in that they typically include only a few retailer outlet locations, with few if any eating establishments as well as no other convenience or specialty shops. Spanning between 50,000 sq. ft. for a single location and up to 500,000 sq. ft. or more for multiple retailers, factory outlets have the largest trade area of up to 75 miles.
As you can see, there is a wide variety of retail commercial real estate investing properties available to fit different investment needs and goals. Whether you are interested in starting out small through commercial property investing in convenience or neighborhood centers or you would like to partner with others and consider larger commercial property for sale like lifestyle centers or malls, there is something for everyone. Discuss your venture goals with a skilled commercial realty agent who can help you find the perfect opportunities!