In most parts of the country, the local mall is the textbook definition of a regional centre. These properties are enclosed malls, typically offering 400,000 to 800,000 square feet of retail space and have at least two anchors. They attract customers from a main shopping area of 5 to 15 miles, and a large percentage of the general merchandise available in regional centres is clothing. The traditional appeal of regional centres lies in their main stores.
Simon Property Group is the largest owner and operator of regional centres in the United States. The best example of a regional centre is a typical shopping centre - big, closed, and surrounded by parking lots. They have more than two main stores and more variety of store types, but they mostly contain clothing stores. When it comes to investing in commercial real estate, it's important to understand the different types of malls. For a mall to be considered an energy centre, at least 75 to 90% of the available retail space must be dedicated to main stores.
According to the International Council of Shopping Centers, more than 50% of neighbourhood centres are anchored in a grocery store. The Mall of America in Bloomington, Minnesota, and American Dream in East Rutherford, New Jersey, are two examples of superregional centres. Despite the apparent “death” of the mall, traditional malls continue to dot the United States with generous offerings. Based on these two traditional configurations, there are 8 different types of retail malls. Superregional centres have the largest main shopping area and generally attract customers from 25 to more than 75 miles. That's because superregional centres typically have 3 or more anchors and at least 800,000 square feet of retail space. All these answers are correct because the definition of a retail mall is incredibly broad.
If you asked five people to describe a mall, you would most likely end up with at least 2 or 3 very different answers. The regional mall offers a full range of shopping services comparable to those found in a small central business district. These centres have high-end stores, boutiques and craft stores that offer unique and high-quality products. The types of stores here are designed to make it easier to buy groceries and other daily needs in a particular neighbourhood. A major retail complex that serves a geographical area other than a city or state, which is home to at least one major full-line department store and several other retailers and service providers. Often remodeled in urban environments inside old buildings, these malls are characterized by a unifying theme.
Understanding what makes up a regional shopping centre can help investors make informed decisions when considering investing in this type of commercial real estate.