Are you about to start a shopping center? If YES, here is a complete example of a mall business plan model and feasibility report that you can use. Okay, so we’ve considered all the requirements for starting a business. We also deepened the analysis and the drafting of a commercial mall plan model of the example shopping mall supported by guerrilla marketing ideas for shopping mall activities. Let’s move on to the business planning section.
Why start a business?
One of the enjoyable activities you can start that will guarantee you a constant income for a long time with little or no stress is the construction of a shopping center. With the right location, top-notch facility, ticketless parking system and excellent marketing skills, you can host high-profile retailers and companies who would like to run their own business from their own facility.
But opening a shopping center requires a large startup capital rather; it also needs solid planning and attention to detail to keep your business profitable. If you are determined to explore the business world by starting a standard company, then you should consider following the business plan below.
A business plan model of the example mall – Industry overview
A shopping mall is a modern, mostly North American term for a form of commercial area or mall where one or more buildings form a complex of shops with communicating walkways, usually indoors. Shopping malls were known to account for 8% of the commercial space in the United States in 2017.
The shopping center management sector is made up of companies that develop, lease, maintain, repair and protect large commercial properties in exchange for rent payments from retailers and companies. For sector operators, rental income generates most of the sector’s revenue with income from the following property management fees.
Industry revenue fluctuates primarily in line with rental rates and occupancy levels. Over five years, the price of commercial real estate, compared with the Green Street commercial property price index, grew at an estimated annual rate of 5, 8 percent. Besides, retail vacancy rates have decreased with a steady increase in commercial traffic due to the rise in disposable income and consumer spending.
The shopping center management industry is indeed a growing sector of the United States economy and generates over $ 23 billion a year from over 8,326 shopping center management companies. The industry is responsible for employing over 44,292 people.
Experts predict that the industry will grow at an annual rate of 0.2 percent between 2013 and 2018. The companies with the largest market share in the shopping center management sector are Simon Property Group Inc. and Brookfield Property REIT Inc.
The mall’s line of business is very open to any aspiring entrepreneur who has the capital and ability to open and manage his shopping centers. Just make sure your property is located in an environment with the right demography and that you will be fine.