The rise of strip malls and AC Service
Air Conditioning Services: The rise of strip malls and AC Service
In the recent times, there has been an increase in malls which feature grocery shopping as well. The rise of strip malls makes it critical to understand whether community shopping centers are going out of fashion. However, CEO of the Brixmore Proper Group, Michael Carroll, there has been significant change in the construction of community shopping center. If 200 million square feet was being occupied back in 2006, the area has now reduced to 16 million square feet thus raising concern. Meanwhile, he also claims that for next ten years, situation might not change due to economical impacts of 2007-2009.
On the other hand, investments in strip malls are also increasing. For instance, the largest mall owner, Simon Property Group has also noticed a statistical change in the shares. The Simon Group owns indoor malls yet the consumer culture on a domestic level is said to be among the most important factors in the rise of share-holding and investments regarding malls.
One of the reasons that malls have upper hand over grocery stores is the fact that the experience is more exciting for customers. Whitestone REIT has also, therefore, shifted the focus on purchasing strips malls and incorporating the spirit of newness in them. REIT is also the company which gave strip malls the trademark term "community centered properties". Although Whitestone group has focused on merely 60 properties in Texas and Arizona, it is strategically investing where there is competition.
On the other hand, Brixmor which has 500 properties believes in investing as much as possible. The CEO claims Birxmor is "one step removed from owning the properties" as the approach differs from its competitors. After buying out Brixmor, Blackstone also strategized by decreasing one-third of the total property so the shift would allow focus on competition.
The in-place leases have also increased over time by leaving the $12 per square foot in 2013 behind. Now, the leases after the fourth quarter have increased to $15 per square foot. Brixmor has made the smart choice of letting go of properties that were not suitable. Now, it is left with the ones that have potential to do great in the competition. In addition to that, it is working with Dollar Tree and Ulta that are growing retailers as well. In 2013, Dollar Tree increased its total leases to 2013 by signing 19 with Brixmor along with REIT.
Brixmor and Whitestone are investing in malls that are grocery-anchored because they are able to derive more traffic and potential customers. It goes without saying that even little change in the construction will add value to malls. Both, Whitestone and Brixmor, are both moving with planned strategies as this point with the realization that strip malls have bright future. Brixmor stumbled in the past yet now it has built a profitable portfolio which promises success and growth whereas Whitestone is focusing on fixer-uppers. This shows that there is a lot of faith in strip malls and their success as long as big groups are willing to invest in them.