Strip mall sales volumes are usually closely tied to traffic counts and population density. Sometimes being a block off the action isn’t good enough. The answer to this question from Lino in Chile applies universally.
LINO ALFARO wrote: Hi, I got a location and I want to develop a Strip Mall in CHILE. Its 1 block,426 ft Long Avenue front, but not the main Avenue that is narrow than this. This Av. serves as a connection on main Aves. Great visibility, 70 parking spaces, grass, 2 story building. One of the possible good tenants told me that he prefers the busy avenue. But they are from other city, as a local I can tell that busy Av. is a crowded one so you lose time trying to move there, so if i get destiny traffic this could be a nice area to do business close to busy crazy slow traffic. Is there a Study about nice Avenues alternative to bussy ones that i can read somewhere? Thanks I appreciate your help.
Lino this is a great topic, and after several studies there’s an easy answer. Several years ago, Randalls, a Safeway company, built a store in South Chicago. The average household income was $16,000 per year, i.e. very low. The store was surrounded by subsidized housing, and the area was crime-ridden. No other store would consider the area due to these negative factors. What Randalls saw was a density of nearly 150,000 potential customers within one mile. Granted most of them were on food stamps, but they still had to eat. Within two years it was one of the highest volume stores in the chain, and in all of Chicago. The fact is, Lino, that our business is based on conversions from potential buyers. If you were a merchant, you’d prefer to have 20,000 people driving or walking by each day than 10,000, because even though their location on the less busy street might be more convenient, they just don’t have a chance to lure in as many people. Consider building a more economical building, and targeting destination, rather than convenience tenants. LC The Strip Mall Insider