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How Much Does A Shopping Mall Cost?

When it comes to shopping malls, there are a lot of questions about them nowadays such as whether they’re worth it or not. While eCommerce is a great way for shoppers to purchase what they need, it doesn’t provide the great experience and convenience that a shopping mall has. Shopping malls are still relevant and widely used all over the world. It allows consumers to see products upfront so they can judge the quality, fitting, and pricing. It also allows for a nice experience getting out of the house.

Shopping is ingrained in many cultures, and visiting malls is considered a nice social event that can allow people to have a nice outing while purchasing items they need or want.  For many investors, the question still arises whether shopping malls’ costs are too much and whether or not it’s worth running a mall. In this article, we’ll explain it all so you can gain some clarity.

How much does a shopping mall cost?

In short, it entirely depends. This includes how large the shopping mall will be, where it will be located, the cost of the land, the cost of the overall development, and then there needs to be installed such as plumbing, electricity, lighting, flooring, interior, and much more.

Are shopping malls still profitable?

While there is a debate on whether or not a shopping mall is profitable, the malls themselves will tend to make a profit while many shops may not. Shopping malls will make profits through various ways that shops at the malls may not be able to do.

While it can depend on the location of the mall itself as there may be specific laws in effect. Many mall owners will receive rent and a small percentage of profit from sales from within the mall itself. If a mall is shared between multiple owners, then the profits can then vary from 50% to 70%. There are different contracts, so the revenue that the mall receives can vary per mall, company, and location.

Are malls a good investment?

There are different types of malls but something such as a strip mall does prove to be an excellent investment as it can assist in diversifying the portfolio.

What type of malls are there?

Different types of malls exist such as the:

  • A strip mall is a mall that’s open-air shopping. All of the shops will be in a single row placed in front of the parking lot. Strip malls will provide a variety of stores and restaurants. These styles of malls can often be found in both rural and suburban cities.
  • Outlet Mall, this style of the mall will look similar to a strip mall. This is where manufacturers will sell their outdated clothing for discounted prices to the public
  • Plaza, is a marketplace or square. Plazas can vary on location, some are closed off from traffic while others include roads and crossing
  • A shopping center, a shopping center can include one large building with stores and restaurants indoors but it can also contain shops next to the large building or adjacent to it. These shopping centers will also contain entertainment areas such as arcades and theatres, as well as dining venues.
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