With the growth of the suburbs in the 1950s, strip malls often became a vital part of the landscape. Sometimes called village greens, they were the new downtowns for bedroom communities that didn’t necessarily have an actual downtown.
Over the decades, though, the strip mall’s reputation has waxed and waned. Sometimes seen as essential—but often seen as a necessary evil or even a symptom of suburban sprawl—there is no escaping the fact that strip malls provide two key necessities for consumers: convenience and service.
With this in mind, it’s no small wonder that strip malls can arguably still claim a role as the town square. And boy, are they common in Florida; big and small cities alike.
Generally speaking, strip malls come in three sizes, each based on square footage and occupants:
Attracting lucrative tenants to these centers is not always an easy task, especially since it’s often impossible to accommodate large, nationally known anchor stores. That being said, there are numerous prospective tenants. And creating the perfect blend of them requires flexibility and creativity, all while keeping a constant eye on convenience.
How to create the right mix in a strip mall
Unlike larger shopping malls, which are buckling under the strain of e-commerce competition, smaller shopping centers are able to provide a niche market for tenants who may be Internet-resistant or just service-oriented. These two traits are why consumers continue to need in-person shopping experiences—and strip malls.
Depending on space, the ideal combination of strip-mall tenants includes a mix of the following:
When considering the proper mix for a strip mall, it’s also important to understand what small-shopping-center tenants require. While some of these businesses may be part of a franchise, chances are that most will be privately owned. As such, they have a great interest in ease of access for potential customers to reach them, adequate and convenient parking, and good visibility.
Because strip-mall tenants are smaller operations, there’s also a strong need for high foot traffic, and a proper mix of tenants can help boost that number. One technique is to consider “co-tenancy,” understanding that certain businesses have specific peak times. By creating a balance, it’s possible to keep the parking lot full all day long so each of the businesses can flourish based on patronage patterns.
In many ways, owners of strip malls need to be hands-on. A specific set of skills not only keeps each storefront occupied, but they also help to keep the shopping center relevant.
To help the process go more smoothly, owners and tenants should work with a skilled commercial real estate partner. Not only can professionals help find the perfect location for a particular business, they can also assist in putting together a winning combination of them for a particular shopping center.
Morris Southeast Group has a highly skilled and knowledgeable team of pros for all of your real estate needs, either as an owner or a tenant.
To learn more about our services including property management and investment opportunities, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at email@example.com.
Don’t be fooled by the number of cranes rising above the skylines of many South Florida cities. While their presence certainly indicates a building boom in the region, it also highlights a problem that is hiding in plain sight—an affordable housing crisis.
According to a recent report from the Miami Urban Future Initiative, a joint project of Creative Class Group and FIU’s College of Communications, Architecture, and The Arts, Miami and much of South Florida’s tri-county area are facing a severe problem: the lack of housing affordability brought on by high housing costs and low wages.
Miami certainly isn’t alone in having to deal with an affordable housing crisis; cities across the nation are also facing the same dilemma, to varying degrees. But all too often, the topic is the pink elephant in the room. We know it exists and we know it’s bad, but a discussion of low-income housing can ignite a NIMBY (“not in my backyard) debate involving neighborhoods that don’t want solutions in their area.
Not talking about it, though, not only perpetuates the problem—it makes it worse. That’s a big reason discussing “Miami’s Housing Affordability Crisis” is important. It gets the dialogue started. Although the picture it paints of the South Florida community isn’t always pretty, it is certainly significant:
Nevertheless, things aren’t all gloomy. In fact, the affordable housing crisis is creating a challenge and CRE developers and investors are working to meet it head-on. In recent years, more investors have expressed an interest in purchasing buildings that are part of an affordable housing program or are at a market-based low-value rather than starting such a project from scratch. Original development projects are simply too expensive.
While some of these for-profit investors are interested in raising rents, a majority is content to keep the rents relatively low. “Affordable” can also be a smart business practice. Generally speaking, affordable housing properties tend to be fully occupied and provide a dependable, consistent, and steady income. For many investors, low-income and affordable housing can even be a safer bet than a class A apartment building—as demand is continually strong.
For a better look at what’s happening on a local level, consider the 16 Corner Project in Miami’s Overtown community. There, a joint effort between a private real estate developer and the city’s Omni Community Redevelopment Agency resulted in the successful rehab of a 1950s apartment building.
The partnership was a cost-sharing marriage that combined development skill with agency financing, which resulted in high-standard, low-income housing—and the developer is still able to see a profit.
Additionally, the University of Miami’s Office of Civic and Community Engagement developed an online mapping tool that has identified more than 500 million square feet of vacant, unused, and under-utilized land across Miami-Dade. Much of the land is located along transportation hubs and is ideally suited for low- and middle-income projects. The tool, known as Land Access for Neighborhood Development (LAND), is easy to navigate, free, and updated every two weeks.
When it comes to CRE investments, a lot of time is spent talking about and searching for those big-ticket items—pristine properties and big returns. The truth, though, is that all properties and all housing needs have value. Because, when done correctly, they provide for all members of the community.
The pros at Morris Southeast Group believe in the South Florida community. It’s why we live, work, and play here. It’s why we love it here.
To learn more about affordable housing property investment and development, property management services, or other investment opportunities, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at firstname.lastname@example.org.