Power Centers in Commercial Real Estate

What is a Power Center in Commercial Real Estate? 

A power center is an outdoor shopping center with multiple big-box retailers, as well as an array of smaller retailers, restaurants, and other kinds of businesses. Power centers are typically located in suburban areas due to cost and space restrictions, but can sometimes be located in urban areas as well. Many power centers are set up as large strip centers, but also may contain several out-parcels. These are pieces of land intended for individual tenants, such as banks or fast-food chains. 

Power Centers vs. Community Shopping Centers and Regional Malls 

When compared to other kinds of retail properties, power centers sit between community shopping centers and regional malls, at least in terms of size. Unlike power centers, community shopping centers typically only have one big box store (if they have one at all). However, shopping centers often have multiple smaller anchor tenants, such as grocery stores and pharmacies.

In comparison, regional malls are often significantly larger than power centers, and usually contain both big-box retailers and several higher-priced department stores. However, in recent years, some smaller regional malls have been converted to power centers in the hopes of increasing foot traffic and restoring revenues in the face of competition from online retailers. 

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