Shopping centers are a big business, and they’re getting bigger every year. The U.S. shopping center industry is expected to grow by $24 billion in 2021, according to the International Council of Shopping Centers (ICSC). But how much does it cost to build a shopping center?
How much does it cost to build a mall?
The cost to build a shopping center depends on many factors — including location, size and number of tenants. However, according to the ICSC, the average cost per square foot ranges from $180 per square foot for a small strip center with 10 stores to $500 per square foot for an upscale regional mall with 30 stores.
An average-sized enclosed mall costs about $750 million to build, according to the ICSC. A typical open-air center costs about $100 million less than that. The average cost per square foot for an indoor mall ranges from $400 to $600; for an outdoor center, it’s between $250 and $350 per square foot.
Cost to build a shopping center
The cost to build a shopping center depends on many factors, such as the size of the center, location, and number of tenants. The average cost of building a strip mall is $200 per square foot. For example, if you were going to build a 1,000-square-foot strip mall with three stores, you would need 30,000 square feet of land and spend $6 million.
The cost to build a shopping center includes the land price, which can vary depending on location and availability. For example, an acre of land located in California costs around $80,000 while an acre of land in North Dakota costs about $4,000. The cost for building materials also varies depending on where you live and what type of materials you choose; however, cement blocks are usually cheaper than bricks or stone masonry units (SMUs). You should also consider adding other features such as parking spaces or underground parking garages as these will increase your project’s overall cost.
The cost to build a shopping center varies greatly depending on the size of the project, the location and the type of center.
Costs can range from $20 per square foot for a small strip mall to $500 per square foot for an upscale shopping center.
A typical strip mall would have between 25,000 and 50,000 square feet of space, while a small regional mall might have 100,000 square feet or more. A large regional mall might be 200,000 square feet.
It is estimated that you need to invest about $1 million in land costs alone if you want to build a strip mall. This includes leasing or buying land and preparing it for construction. For example, if you buy land for $1 million and then prepare it for construction at an additional cost of $200,000 then your total investment in land would be $1.2 million dollars. In addition to this expense you will also need money for building permits and other fees that are required by your state government before any work can begin on site
The cost of building a shopping center can vary substantially depending on the type of property and what features are included. For example, if you are building a strip mall, your costs may be lower than if you were building an enclosed mall with parking garages.
The average cost to build a small shopping center is $20 million to $30 million, according to one estimate from the International Council of Shopping Centers (ICSC). However, this figure does not include land acquisition costs or tenant improvements.
The ICSC estimates that it costs about $20 per square foot for new construction and about $80 per square foot for redevelopment projects. The average size of an enclosed mall is between 300,000 and 400,000 square feet; therefore, the average cost of construction would be between $6 million and $9 million.
If you’re interested in building an open-air retail center with multiple tenants but no enclosed structure, then your total cost will be significantly less than constructing an enclosed mall.
In addition to the purchase price of the land itself, there are several other factors that affect how much it will cost to build a shopping center:
How Much Does It Cost to Build a Mall?
The cost of building a mall is typically in the millions of dollars, but this can vary depending on the size of the project. The cost can also vary based on whether you are constructing a mall in your own backyard or if you are building one on leased land. The cost also varies depending on whether you are building a strip mall or an enclosed mall.
The most important factor that affects the cost of building a mall is the location. The more expensive areas will have higher costs associated with developing and building your mall, because land values are higher. For example, if you want to build a shopping center near an affluent area such as Beverly Hills, California, it will cost significantly more than if you were to build one in less expensive areas such as Omaha, Nebraska.
Other factors that affect how much it costs to build a mall include:
Size of the project – smaller projects tend to be cheaper than larger ones
What type of retail space is being built – enclosed malls tend to cost more than strip malls
A shopping mall is a form of a large, enclosed, retail complex. It has a wide range of tenants, including anchor stores, and smaller specialty shops. Many modern shopping malls have food courts, movie theaters, restaurants (including fast food), and sometimes even video arcades.
A typical single-level shopping mall has about 30 stores per acre (40 per square km). More than 50% of the space in a level is devoted to parking; some malls are built with multiple levels reducing this proportion to less than 20%. In the United States, most malls are open for business every day of the year except on Christmas Day (December 25), Thanksgiving Day (the fourth Thursday in November) and Easter Sunday.
The average American mall will offer approximately 900 stores as well as eating establishments and services such as banks and ATMs. The majority of U.S. shopping centers are located in suburban areas where population density is high enough to support this type of development. Outlet centers are usually located in rural areas or on the edge of towns where extra space is available but access by road is poor due to traffic congestion or distance from other commercial properties.