It’s no secret that shopping malls are some of the best real estate investments on the market right now, but most people who are looking to buy or sell commercial property aren’t aware of all the ways that shopping malls can make them money. From shopping mall ownership to shopping mall investment properties, there are plenty of options for those looking to invest in real estate; so you may want to take a look at this list and see if any of these things apply to you!
1) The Real Estate Boom
The buying and selling of real estate is a business, but it can be hard to break into. In order to get involved in real estate investing, you need to have an understanding of it as a business, how it operates and how to acquire properties. The process isn’t simple—but if you want access to investments that can reliably make money for you long-term, learning all about investment properties is a great place to start. It’s also important not only to learn from others who are working in or investing in real estate, but also from your own experience. Investing in income-producing property is something that takes time and study.
2) Where else can you make money?
If you have an underused space in your property, renting it out can provide a nice little side business. For example, my sister has a storeroom in her apartment building which she rents out to two other tenants for $25/month each. That’s $50 extra per month she earns with very little work on her part—and money that makes her more than your average bank account. Sites like AirBnB are great options for people who want to make money by renting out their own homes or apartments and making some extra cash while they’re away on vacation.
3) The financial benefits of renting out parking spaces
While shopping malls across America have been struggling with falling sales, declining foot traffic and competition from online retail sites, there is one place that’s still booming: their parking lots. In fact, nearly 20 percent of U.S. malls are now 100-percent leased to third-party operators who pay a flat monthly fee to use spaces as long as they make money from them. While some mall owners think it’s cheating if you start renting out parking spaces that others pay for with their wallets, others see it as an important source of revenue for a time when shopping malls need all of the income they can get.
4) Rental income from retail tenants
When a retail tenant moves into your Zaver PC shopping mall, it’s like money in your pocket. And if that business stays put for years, you could end up collecting an average of $15 to $20 per square foot every month. That’s because a growing number of retailers—from restaurants to coffee shops to gyms—are signing long-term leases at malls across America. A new report from Colliers International found that 75 percent of U.S. malls are now seeing multiyear commitments from tenants; as much as two-thirds of all new leases include options for renewal that can run five or 10 years, up from one-third back in 2014.
5) Why your investment may appreciate in value over time
The more people that walk through your door, and stay in your store, your investment is valued higher. Consumers love shopping in malls because they are a comfortable place to be. A well maintained mall will keep consumers coming back for more because it is easy to shop there with their family. Walking into a mall is fun for consumers because it provides an escape from everyday life. The clean open spaces allow you to see all of your options when buying a product without having to drive or walk around town looking for what you want. Your investment may appreciate in value over time, but if no one comes in you might lose money on your investment because no one wants to buy retail space there anymore.
