business plan for building a shopping mall

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Shopping Mall Business Plan

Published Mar.17, 2023

Updated Apr.24, 2024

By: Cynthia Turner

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Table of Content

1. Shopping Mall Business Plan Sample and Template

This business plan for building a shopping mall can be a great resource for entrepreneurs looking to start their own shopping mall.

It provides an overview of the mall’s structure, operations, and financials to help them understand the market and make well-informed decisions.

Lastly, it includes a marketing strategy that outlines how to start a shopping mall and how it will differentiate itself from the competition, which can be used for various business plans like Supermarket Business Plan .

2. Executive Summary

Business overview.

The Arcade Shopping Mall is a one-stop shopping destination for quality products and services. It will offer its customers various products and services, from clothing, electronics, and health and beauty to entertainment and leisure activities. The small shopping mall business plan will also feature a large food court, a play area for children, and a variety of specialty shops.

The mall will provide a safe, pleasant shopping experience for its customers and will strive to create a sense of community within the mall. The mall will be conveniently located in a densely populated area, making it easily accessible to customers.

We plan to use the latest technology to create an enjoyable, stress-free shopping experience. Our mall will feature a variety of high-end stores, restaurants, and entertainment options, including a movie theater, bowling alley, and arcade. We plan to use innovative marketing strategies, such as social media campaigns and targeted advertising, to reach our target customers.

Our Wholesaling Business Plan offers a wide variety of products for customers. We offer a selection of luxury and everyday items, including

• Clothing and Apparel: T-shirts, jeans, dresses, jackets, activewear, sweaters, and accessories.
• Footwear: Athletic shoes, sandals, boots, and dress shoes.
• Electronics: Phone accessories, tablets, laptops, headphones, and speakers.
• Home Goods: Furniture, bedding, kitchenware, and home décor.
• Beauty Products: Makeup, skincare, hair care, and fragrances.
• Jewelry: Watches, necklaces, rings, and earrings.
• Toys: Action figures, dolls, and educational toys.
• Sporting Goods: Exercise equipment, team sports gear, and outdoor recreation gear.
• Books and Movies: Books, DVDs, and video games.

Customer Focus

Same as our Sandwich Shop Business Plan , we will ensure that our customers are always our top priority. We will provide excellent customer service in all aspects of our business. We will ensure that our customers always have access to the products and services they need. We will strive to create an enjoyable shopping experience for our customers. We will also use customer feedback to continuously improve our services and products.

Management Team

Our management team will consist of experienced professionals from various backgrounds. We will have a team of experienced managers and supervisors who will be responsible for overseeing the day-to-day operations of the shopping mall. Compared to our Food Truck Business Plan , we will also have a team of experienced marketing and sales professionals responsible for driving customer traffic and sales.

Success Factors

Our success will depend on several factors, including our ability to provide excellent customer service, our ability to source high-quality products and services, and our ability to market our products and services effectively. We will also need to be able to manage our operations and finances effectively. Additionally, we will need to be able to develop and maintain relationships with our suppliers and vendors.

Financial Highlights

Our financial highlights include revenue projections, capital and investment requirements, and estimated profits. In the business plan shopping mall project, we will generate revenue from selling products and services and tenant rent payments. We will also have initial capital and investment requirements to construct the shopping mall and purchase equipment and supplies. Our expected profits will depend on the success of our operations and our ability to generate customer traffic.

• Revenue growth of 8.5% year over year
• Operating profit of $5.0 million in Year 1
• Positive cash flow from operations of $2.5 million in Year 1
• Total capitalization of $20 million
• Debt-to-equity ratio of 1.0:1
• Return on equity of 15% in Year 1
• Payback period of 5 years

3. Company Overview

Who is arcade shopping mall.

Arcade Shopping Mall is a modern shopping complex located in the heart of a major metropolitan area. The mall offers a wide variety of goods and services and has grown to become a destination for shoppers from all over the region. The mall is owned and operated by a private developer who has invested significant capital into the mall to keep it competitive and up-to-date.

Arcade Shopping Mall History

Arcade Shopping Mall was opened in the year 2020 and since then has quickly become a popular shopping venue. It is conveniently located near public transportation and other nearby amenities. The mall business proposal offers a wide selection of department stores, specialty shops, and an array of dining and entertainment options. The mall also features an indoor play area for children and a movie theater.

The mall has a management team that is dedicated to providing excellent customer service and creating a safe and comfortable shopping environment. The team works hard to ensure that the mall is clean and well-maintained and that customers have an enjoyable shopping experience. The mall also works to keep up with the latest trends and to stay ahead of the competition.

The mall has grown steadily since its opening, and the management team is always looking for ways to improve the mall and make it more appealing to potential customers. The mall is committed to providing an enjoyable shopping experience for all who visit.

The key elements of the business concept of Arcade Shopping Mall are:

• Convenience: Arcade Shopping Mall provides customers with a convenient and easy-to-use shopping experience that can be accessed from any device.
• Rewards: We offer a variety of rewards programs that allow customers to earn rewards points for their purchases and redeem them for discounts.
• Variety: Our selection of products ranges from the world’s leading brands to unique and hard-to-find items.
• Quality: We are committed to providing customers with the highest quality products and customer service.
• Engagement: Our interactive shopping experience encourages customers to engage with our products and services.

4. Industry Analysis

The shopping mall industry has grown tremendously over the past several years, with the number of shopping malls in the United States nearly doubling since the 1980s. Shopping malls have become a staple of American consumer culture, providing various goods and services in one convenient location.

The global shopping mall industry is estimated to be worth $1.4 trillion in 2018, with the U.S. contributing the largest share of that figure. This growth is projected to continue, with the global market expected to reach $2.7 trillion by 2025. The growth is driven by several factors, including changing consumer preferences, technological advances, and an expanding global middle class.

The shopping mall industry is highly competitive and fragmented, with major players such as Simon Property Group, Westfield Corporation, and Brookfield Property Partners controlling a large market share. These companies operate large, regional shopping malls that are often the destination of choice for consumers.

Despite the competition, there is still room for smaller, locally-owned shopping malls to succeed. These malls can focus on providing a unique experience that appeals to local shoppers and differentiates them from larger national players. In addition, these malls can focus on providing services and amenities that larger malls may not have, such as specialty stores, local restaurants, and entertainment options.

Overall, the shopping mall industry is expected to remain a lucrative market for the foreseeable future. With the right approach, locally-owned malls can still achieve success in this crowded and competitive space.

5. Customer Analysis

Demographic profile of target market.

The target market for a shopping mall should be identified based on the location, the types of goods and services offered, and the demographic makeup of the local community. The demographic profile of the U.S. target market is highly diverse and includes a mix of gender, race, ethnicity, income level, and age. The U.S. population is estimated to be 329,064,917, with an estimated median age of 37.9 years. The population is 68.6% non-Hispanic White, 13.4% Hispanic, 13.3% African American, 5.9% Asian, and 4.3% of other races or multiple races. The average household income is estimated at $59,039, and the median is $50,895.

Customer Segmentation

Shopping malls should segment their customers based on their purchasing behaviors. For the shopping mall business plan, customer segmentation can be based on age, gender, income level, and geographic location. The segmentation can be further divided into sub-segments such as age (under 18, 18-25, 25-45, 45-65, and 65+), gender (male and female), income level (low, medium, and high), and geographic location (city, suburban, and rural). By segmenting the customers, the business can better understand the needs of each segment and develop marketing strategies to target specific segments.

6. Competitive Analysis

In developing a shopping center business plan, the shopping mall industry is highly competitive and there are a number of established players in the market. In order to succeed, our shopping mall business plan must consider the market competition and identify ways to differentiate our product offering and create a competitive advantage.

Direct and Indirect Competitors

Direct Competitors

The direct competitors of our shopping mall business plan include national and international shopping malls, department stores, specialty stores, and online retail outlets. We must consider the services, prices, location, and convenience factors that these competitors offer in order to compete effectively.

Indirect Competitors

Indirect competitors include other entertainment venues, such as movie theaters, amusement parks, and other leisure activities. We must consider how our shopping mall will provide unique experiences and services that will draw customers away from these competitors.

Competitive Advantage

It is important to identify the unique features and benefits the shopping mall offers to make it stand out from its competitors. Competitive advantages include low prices, convenient location, extensive product selection, and excellent customer service.

Our competitive advantage lies in our ability to offer a unique shopping experience. We will focus on creating an inviting atmosphere with high-quality customer service and an extensive selection of products and services. We will also focus on providing exclusive deals, discounts, and innovative shopping experiences, such as virtual reality tours and interactive displays.

7. Marketing Plan

The marketing plan for the shopping mall business model will focus on five key aspects:

• Target market identification: The target market for this shopping mall business is consumers who are looking for a convenient, wide selection of products at competitive prices. The target market will consist of individuals with various income levels and spending habits.
• Branding and positioning: The shopping mall will be positioned as a premier shopping destination offering an extensive selection of products at competitive prices. The brand will be associated with quality and value.
• Marketing mix: The marketing mix for this shopping mall business will include traditional advertising, direct mail, online marketing, and public relations. The focus will be on reaching the target market and communicating the message of value and quality.
• Professional website: The shopping mall will have a professional website with an e-commerce platform for online shopping. The website will feature information about the mall, including store listings, events, promotions, and more. The website will be optimized for search engines and will include social media links.
• Promotions strategy: The promotions strategy for this shopping mall business will include discounts, coupons, loyalty programs, and special events. The promotions will drive traffic to the mall and increase sales. These promotions and discounts could include special offers on particular days, “buy one get one free” offers and more.

The direct competitors for this shopping mall business are other shopping malls in the area. These competitors include large retail stores, department stores, and other shopping centers. The indirect competitors are online retailers and other e-commerce sites.

Promotions Strategy

We plan to offer a variety of promotions to attract customers to our shopping mall. As the owner knows how to open a mall, he suggested, we will offer discounts and special offers on a regular basis to encourage customers to purchase products and services. We will also host events and activities, such as fashion shows, product launches, and special offers.

We plan to partner with local businesses and organizations to offer exclusive discounts and promotions to our customers. We will also employ loyalty programs to encourage repeat customers.

Our pricing strategy will be based on offering quality products and services at competitive prices. We will offer high-end products and services at premium prices and budget-friendly products and services at more affordable prices. We will also offer discounts and special offers on a regular basis to attract customers.

We plan to offer various payment options to make our products and services more accessible to our customers. We will accept cash, debit, and credit cards, as well as e-wallet payments.

8. Operations Plan

Operation functions.

Security: The mall must ensure that customer safety is a top priority. This will include having a security team on-site to monitor activity and respond to emergencies.

Maintenance: The mall will need a team to keep the building and grounds in good condition. This will include regular cleaning, repairs, and upkeep of the facility.

Customer Service: The mall must provide customers with an enjoyable shopping experience. This will include providing friendly, helpful service and responding to customer inquiries and complaints.

Marketing: The mall must have a marketing plan to promote the mall and attract customers. This will include advertising, public relations, social media, and other promotional activities.

Management: The mall will need to have a management team in place to oversee the day-to-day operations of the mall. This will include setting goals, creating policies, and ensuring the mall operates efficiently and profitably.

4/15/202X – Obtain Funding

4/22/202X – Develop Business Plan & Hire Professional Team

5/1/202X – Lease Property & Secure Necessary Permits

5/8/202X – Begin Construction

5/15/202X – Hire & Train Staff

5/22/202X – Finalize Construction & Buy Necessary Fixtures & Equipment

6/1/202X – Launch Marketing Campaign

6/8/202X – Open for Business

6/15/202X – Monitor & Evaluate Performance

9. Management Team

The management team of the shopping mall will include a team of highly-skilled professionals who will be responsible for the day-to-day operations of the mall.

Company Staff

The Company Staff consists of experienced professionals who are dedicated to providing superior customer service. The staff is responsible for ensuring that the mall is safe, clean, and enjoyable for customers.

• VP of Retail
• VP of Real Estate
• Store Managers
• Sales Associates
• Support Staff
• Maintenance Staff
• Security Staff

10. Financial Plan

The financial plan for this shopping mall project is based on an initial investment of $10 million. This investment will be used to renovate the mall, purchase new inventory, and hire personnel to manage the mall. The investments will be made in the following areas:

• Renovation: $3 million
• Inventory: $2 million
• Personnel: $2 million
• Advertising/Marketing: $1 million
• Legal Fees: $500,000
• Miscellaneous: $1.5 million

The total cost of the project is estimated to be $10 million.

Key Revenue & Costs

The primary sources of revenue for the mall will come from rent from tenants, sales from tenants, and from other sources, such as parking fees and food court revenue. The mall is estimated to generate approximately $15 million in total annual revenue.

The primary costs for the mall will include rent for the space, personnel costs, and advertising/marketing costs. The mall is estimated to incur total annual costs of approximately $10 million.

Funding Requirements and Use of Funds

The total project cost is estimated at $10 million. To finance the project, the mall will need to secure loans and/or equity investments. It is estimated that approximately $7 million in financing will need to be secured to cover the project’s cost.

The funds will be used as follows:

Key Assumptions

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To successfully launch and operate the mall, the following assumptions will need to be made:

The mall will have a total of 140,000 square feet of retail space, including anchor stores and smaller shops.

The start-up costs for the project will be approximately $15 million.

The mall will be open for business 12 hours a day, seven days a week.

The mall’s primary target market will be middle-income shoppers in the local area.

The mall will have an initial occupancy rate of 75%, with an average rent of $25/square foot.

The mall will offer amenities such as a food court, movie theater, and play area.

A team of experienced retail professionals will manage the mall.

The mall will generate approximately $20 million in gross sales in its first year of operation.

The mall will generate a positive cash flow by the end of its first year of operation.

The mall will have an average annual occupancy rate of 90% over the next five years.

Financial Projections

All tables in PDF

• What is a shopping mall business plan? A shopping mall business plan is a document that outlines the operational and financial objectives of a shopping mall. It typically includes market analysis, marketing strategies, financial projections, operational details, and other information necessary to start and operate a successful shopping mall. The plan should also outline strategies for managing the mall, including leasing strategies, customer service, and marketing.
• Strip mall : A strip mall, also known as a strip center, is a shopping center that consists of a row of storefronts, typically with surface parking in front.
• Enclosed mall: An enclosed mall, or indoor mall, is an indoor shopping center that usually features a variety of stores and restaurants.
• Outlet mall: An outlet mall is a shopping center that features discounted, name-brand merchandise from various stores.
• Super regional mall: A super-regional mall is a large shopping center with numerous department stores, specialty stores, and restaurants.
• Lifestyle mall: A lifestyle mall is a shopping center with a mix of upscale retailers, restaurants, entertainment venues, and services.
• What are the main sources of revenues and expenses for a shopping mall? The main sources of revenue for a shopping mall include retail sales from stores, rental income from tenants, and income from food courts and other amenities. Retail sales are generated from the stores within the mall, which typically includes clothing stores, shoe stores, and other specialty shops. Rental income is generated from tenants who pay to occupy space in the mall. Finally, income from food courts, movie theaters, and other amenities can be a significant source of revenue. The main expenses for a shopping mall include property taxes, rent payments, utilities, maintenance costs, and marketing expenses. Property taxes are typically based on the assessed value of the mall’s property. Rent payments are made to the mall’s landlord and to the tenants who occupy space in the mall. Utilities include electricity, water, sewer, and other services. Maintenance costs include the repair and upkeep of the mall’s grounds and facilities. Finally, marketing expenses include advertising, promotions, and other activities to attract customers to the mall.
• How do you get funding for your shopping mall business plan? One of the most common ways to fund a shopping mall business plan is to approach investors. This can be done through a variety of options, such as through angel investors, venture capitalists, private equity firms, and crowdfunding platforms. Through these sources, investors can provide funding in exchange for equity in the business, meaning that they will be part-owners of the mall. Additionally, some investors may provide debt financing, which involves the mall receiving a loan from the investor that must be paid back, usually with interest. Other sources of funding may include grants and government programs, bank loans, and personal savings.

Download Shopping Mall Business Plan in PDF

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Home » Sample Business Plans » Real Estate

How to Write a Shopping Mall Business Plan [Sample Template]

Are you about starting a shopping mall? If YES, here is a complete sample shopping mall business plan template & feasibility report you can use for FREE . One of the good businesses that you can start that will guarantee you steady income for a very long time with little or no stress is building a shopping mall.

With the right location, top-notch facility and good marketing skills, you can accommodate top profile retailers and businesses who would want to run their business from your facility. But opening up a shopping mall requires pretty huge startup capital; it also needs solid planning, and attention to detail in order to keep your business profitable.

A Sample Shopping Mall Business Plan Template

1. industry overview.

A shopping mall is a modern, essentially North American, term for a form of shopping area or shopping center in which one or more buildings form a complex of shops with interconnecting walkways, usually indoors. It is on record that in 2017, shopping malls accounted for 8 percent of retailing space in the united states.

The Shopping Mall Management industry consists of companies that develop, lease, maintain, repair and secure large commercial property in exchange for rental payments from retailers and businesses. For industry operators, rental income generates the largest portion of industry revenue with income from property management fees following.

Industry revenue primarily fluctuates in line with rental rates and occupancy levels. During a five-year period, the price of commercial real estate, benchmarked by the Green Street Commercial Property Price Index, grew at an estimated annualized rate of 5.8 percent. Furthermore, retail vacancy rates dwindled as mall foot traffic steadily grew due to boost in disposable income and consumer spending

The Shopping Mall Management industry is indeed a growing sector of the economy of the United States of America and it generates a over $23 billion annually from more than 8,326 shopping malls management companies. The industry is responsible for the employment of over 44,292 people.

Experts project that the industry will grow at a 0.2 percent annual rate between 2013 and 2018. The companies holding the largest market share in the Shopping Mall Management industry are Simon Property Group Inc. and Brookfield Property REIT Inc.

Research conducted by IBISWORLD reveals that over the past five years, the Shopping Mall Management industry has grown by 0.2 percent to reach revenue of $23bn in 2018. In the same time frame, the number of businesses declined by -2.4 percent and the number of employees declined by -2.2 percent.

The shopping mall line of business is very open to any aspiring entrepreneur who has the capital and capacity to open and run his or her shopping malls. Just ensure that your facility is located in an environment with the right demography and you will just be fine.

2. Executive Summary

Simone Cooper® Shopping Malls, Inc. is a licensed shopping mall management business. We have been able to secure a standard and well – positioned facility in a central district in 8322 Sheldon Road, Elk Grove, CA 94624. We are set to compete in the highly competitive shopping mall management industry not only in Elk Grove – California, but throughout the United States market because we intend building and opening our facilities in key cities across the United States.

Simone Cooper® Shopping Malls, Inc. will run a standard shopping mall that will be involved in the rental of commercial space, property management services, consulting, shop appraisal and listing services, construction services and other related services. Our business goal is to become one of the leading shopping mall management companies with world class shopping malls in the United States.

Our workers are going to be selected from a pool of certified, creative and highly experienced workers in and around Elk Grove – California. We will make sure that we take our workforce through the required training that will position them to meet the expectation of the company.

At Simone Cooper® Shopping Malls, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Simone Cooper® Shopping Malls, Inc. is owned by Simone Cooper. A civil engineer, astute business man and core professional with hands – on experience in running shopping malls.

3. Our Products and Services

Simone Cooper® Shopping Malls, Inc. was established with the aim of maximizing profits in the shopping malls management industry. We want to compete favorably with the leading shopping malls in the United States which is why we have put in place a competent team that will ensure that our facilities meet and even surpass our customers’ expectations.

We will work hard to ensure that Simone Cooper® Shopping Malls, Inc. is not just accepted by retailers and businesses in Elk Grove – California, but also in other cities in the United States of America where we intend opening chains of shopping malls.

Our facilities and services are listed below;

• Rental of commercial spaces in our shopping malls
• Property management services
• Consulting, appraisal and listing services for shops in our shopping malls
• Construction of shopping malls
• Other related services.

4. Our Mission and Vision Statement

• Our vision is to establish a standard shopping mall management company whose facility and brand will not only be accepted in Elk Grove – California, but also in other cities in the United States of America.
• Our mission is to provide standard shopping malls and shopping mall management services that can attract some of the leading retailers, commercial offices, hairstylists, barbers and similar businesses who may not want to shoulder the responsibilities of owning a standard shop facility in a busy business district.
• We want to build a shopping mall management brand that can favorably compete with other leading brands in the industry.

Our Business Structure

We intend starting small in Sheldon Road, Elk Grove – California, but hope to grow big in order to compete favorably with leading companies in the industry both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class business cum brand we want to own.

We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Project Manager

Human Resources and Admin Manager

• Sales and Marketing Executive

Facility Manager

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Project Manager:

• Serve as project manager of the organization; works directly with employees
• Develops strategic plan by studying the trends in the industry and financial opportunities; presenting assumptions; recommending objectives.
• Evaluates building plans and permits
• Reviewing and approving plans that meet building codes, local ordinances and zoning regulations
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Maintains quality service by establishing and enforcing organization standards.
• Makes certain that the project team performs efficiently, coordinates employee efforts, and facilitate communications between management and the workforce
• Ensures that the organization works in line with international best practices.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization
• Responsible for making sure that our shopping mall facilities meet the needs of the people that rent, lease or purchase them
• In charge of leasing and renting out accommodations and other properties under our ‘to let list’
• In charge of inspecting and reporting on the structural attributes of a building
• Responsible for evaluating the component systems of a building (electrical, fire, roofing and plumbing)
• Assesses compliance with building, electrical, plumbing and fire codes
• Ensuring that basic facilities, such as water and heating, are well-maintained
• Ensuring that facilities meet government regulations and environmental, health and security standards
• Overseeing building projects, renovations or refurbishments
• In charge cleaning, security and parking, to make sure the surrounding environment is in a suitable condition to work
• Welcomes clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the Human Resource and Admin Manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Simone Cooper® Shopping Malls, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured shopping mall management business that can favorably compete in the industry in the United States and the world at large.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Simone Cooper® Shopping Malls, Inc.;

Our shopping mall is located in Sheldon Road, Elk Grove – California which happens to be one of the busiest commercial centers in California. We can boast of having a result and service driven team and we have access to pool of finance from our partners who are accredited investors. These are some of the strength of business.

As a new shopping mall management company in Elk Grove – California, it might take some time for us to break into the market and gain acceptance especially from top profile clients in the already saturated industry; that is perhaps our major weakness. Another weakness is the ability to compete with big – time players in the real estate industry when it comes to bidding for choice facilities.

• Opportunities:

The opportunities available to a business such as ours are enormous because, as the number of businesses increases, demand for commercial and retail space is assumed to increase at a parallel rate. Additional businesses entering the US economy provide a greater pool of potential clients for mall managers. Interestingly, the number of businesses in the United States is expected to increase in the coming years, presenting a potential opportunity for the industry

It is a fact that online shopping poses a direct threat to traditional brick-and-mortar retailers. With more consumers opting to shop online, many retailers have shuttered physical locations to preserve margins.

As more stores downscale operations, a business such as ours lose out on rent, thereby depleting our projected revenue. E-commerce sales are expected to increase in 2018, posing a possible threat to shopping mall management companies.

7. MARKET ANALYSIS

• Market Trends

The national retail vacancy rate has fallen during the five-year period. The fact that renting a shopping mall can be a cost-effective and efficient solution for retailers and related businesses and workers makes it an ideal Business model for retailers who just want to start small and grow big. The continued rise of online shopping will pressure brick-and-mortar locations out of malls.

This business model gives room for aspiring retailers and businesses to pitch their business tent in highbrow areas without necessarily breaking the bank. All they need to do is to ensure that their products and services are top – notch and they won’t have to spend loads of cash maintaining the facility or marketing their services.

It is the responsibility of the shopping mall management company to promote and maintain their facility. As a matter of fact, retailers are finding their freedom while renting small studio and shop spaces in larger, collective shopping malls.

8. Our Target Market

Before starting our business in Sheldon Road, Elk Grove – California, we conducted a thorough market survey and feasibility studies and we are certain that there are loads of retailers, business centers, hairstylists, barbers, tanning specialist and nail specialists et al who need large, medium and small spaces in our shopping mall facility to run their business.

In view of that, we have created strategies that will enable us reach out to various groups of people who we know will need our services. Below is a list of the people that we will specifically market our facility to;

• Business Centers
• Hairstylists
• Manicure and pedicure specialists
• Tanning specialists

Our competitive advantage

Surviving in the business world as a shopping mall management company operator requires more than your expertise, creativity, and knowing how to deliver standard services but also how to network with key people that matter; entrepreneurs that can rent your shops / spaces.

Because of the competitive nature of the shopping mall management business, there is an increasing degree of related business activities, with big players dominating the market. We are quite aware that to be highly competitive in the industry, you are not only expected to make available safe shops, and office spaces, but you must be able to meet set targets.

Our competitive advantage is anchored on the state – of – the art shopping mall facilities that we have. We also have a team of certified and experience workers. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Another strength that counts for us in the location of our shopping mall management; it is located in one of the most must busiest places in Sheldon Road, Elk Grove – California.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups shopping mall managements businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Simone Cooper® Shopping Malls, Inc. is established with the aim of maximizing profits in the shopping malls management industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Simone Cooper® Shopping Malls, Inc. will generate income by offering the following facility and services;

10. Sales Forecast

One thing is certain, there would always be business owners who would need to cut cost of starting the business hence need to rent a small space in a shopping mall facility.

We are well positioned to take on the available market in the industry in Elk Grove – California and we are quite optimistic that we will meet our set target of renting out all the spaces that is available in our facility and generating enough income/profits from the first six month of operation and grow our shopping mall management business to enviable heights.

We have been able to examine the shopping mall management market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Simone Cooper® Shopping Malls, Inc. It is based on the location of our shopping mall facility and of course our target market;

• First Fiscal Year:  $1 million
• Second Fiscal Year:  $2.5 million
• Third Fiscal Year:  $4 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same facility as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that will support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share.

Our unique selling proposition is that we are well positioned, we offer state of the art facility/services and people can easily access our facility. Our sales and marketing team will be recruited based on their vast experience in the shopping mall management industry and they will be trained on a regular basis so as to meet their targets.

Our corporate goal is to grow Simone Cooper® Shopping Malls, Inc. to become one of the top 10 shopping mall management brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Sheldon Road, Elk Grove – California but also in other cities in the United States of America.

Simone Cooper® Shopping Malls, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Open our shopping malls with a big party.
• Advertise our shopping malls on national dailies, local TV and radio stations
• Promote our business online via our official website and all available social media platforms
• Introduce our business by sending introductory letters alongside our brochure to retailers, business operators, hair stylists, barbers, tanning specialists and manicure and pedicure specialist and key stake holders in Elk Grove – California
• Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
• Make use of attractive hand bills to create awareness and also to give direction to our shopping mall facility
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places in and around Elk Grove – California

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for retailers and business center operators in the whole of Elk Grove – California and other cities in the United States of America where we intend opening our chains of shopping mall facilities which is why we have made provisions for effective publicity and advertisement of our business.

Below are the platforms we intend to leverage on to promote and advertise Simone Cooper® Shopping Malls, Inc.;

• Place adverts on both print (newspapers and real estate magazines) and electronic media platforms
• Sponsor relevant community – based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our tanning services
• Install Bill Boards in strategic locations all around Elk Grove – California
• Distribute our fliers and handbills in target areas
• List our shopping mall management business in local directories / yellow pages
• Advertise our shopping mall facilities in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized facility and services) and we don’t intend to charge less than what our competitors are charging their clients.

• Payment Options

The payment policy adopted by Simone Cooper® Shopping Malls, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Simone Cooper® Shopping Malls, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via Point of Sale Machine (POS)
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for renting our shops and office spaces without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget of establishing a standard shopping mall management business and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
• The total cost for hiring Business Consultant – $5,000.
• The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
• The total cost for purchasing a landed property for the construction of our shopping mall – $1 million.
• The total cost for building a standard shopping mall – $4 million
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $200,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
• The cost of launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $10,000

Going by the report from the market research and feasibility studies conducted, we will need about $5.5 million to successfully construct a medium scale but standard shopping mall business in the United States of America.

Generating Funds/Startup Capital for Simone Cooper® Shopping Malls, Inc.

No matter how fantastic your business idea might be, if you don’t have the money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business. Raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Simone Cooper® Shopping Malls, Inc. is a private business that is solely owned and financed by Mr. Simone Cooper and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $1.5 million (Personal savings $1 million and soft loan from family members $500,000) and we are at the final stages of obtaining a loan facility of $4 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Simone Cooper® Shopping Malls, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to lease our shopping mall spaces a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Simone Cooper® Shopping Malls, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

We know if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard facility and reconstructing the facility to fit into the kind of shopping mall facility we want to manage: Competed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed office furniture, office equipment, software applications, electronic appliances and facility facelift : In progress
• Creating official website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress

More on Real Estate

How to Create a Business Plan for a Shopping Mall: A Complete Guide

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Launching a successful business venture in the competitive world of shopping mall and retail center construction requires meticulous planning and preparation. Before diving into the business plan, savvy entrepreneurs must navigate a 9-step checklist to ensure their project's viability and set the stage for long-term success. From conducting comprehensive market research to securing reliable funding sources, this essential process lays the groundwork for a thriving enterprise.

Steps Prior To Business Plan Writing

Conduct Comprehensive Market Research on the Industry

Before embarking on the development of a business plan for a shopping mall and retail center construction project, it is crucial to conduct a thorough market research. This comprehensive analysis will provide valuable insights into the industry's current state, emerging trends, and the unique needs of potential customers. By understanding the market landscape, MallCraft Constructors can strategically position its services and tailor its offerings to meet the evolving demands of the industry.

The first step in the market research process is to gather data on the overall shopping mall and retail center construction industry. This includes analyzing market size, growth rates, and key industry players. According to a recent industry report, the global shopping mall and retail center construction market is expected to grow at a CAGR of 6.2% from 2021 to 2026, reaching a market size of $1.2 trillion by 2026 . Understanding the industry's dynamics and projections will help MallCraft Constructors identify opportunities and potential challenges.

Next, it is crucial to analyze the target market and identify the specific needs and preferences of potential customers, which in this case would be developers, retailers, and property management companies. A survey conducted by the International Council of Shopping Centers (ICSC) revealed that developers are increasingly seeking shopping malls and retail centers that incorporate sustainable design, innovative technologies, and flexible spaces to accommodate evolving consumer trends . By understanding these customer needs, MallCraft Constructors can tailor its services and offerings to provide unique value propositions.

• Utilize industry reports, market research studies, and trade association data to gather comprehensive information on the shopping mall and retail center construction industry.
• Conduct customer surveys and interviews to gain insights into the specific needs and preferences of developers, retailers, and property management companies.
• Analyze emerging trends, such as the growing demand for sustainable and technologically advanced shopping environments, to identify opportunities for differentiation.

By conducting a thorough market research, MallCraft Constructors can develop a deep understanding of the industry, its key players, and the evolving needs of its target customers. This knowledge will be instrumental in crafting a comprehensive business plan that aligns with the market's demands and positions the company as a trusted and innovative partner in the shopping mall and retail center construction industry.

Analyze the Target Market and Identify Customer Needs

Conducting a comprehensive analysis of the target market is a critical step in developing a robust business plan for the Shopping Mall and Retail Center Construction project. By deeply understanding the needs and preferences of potential customers, MallCraft Constructors can design and build shopping environments that cater to their evolving demands, ultimately driving higher occupancy rates and long-term profitability.

To begin, MallCraft should gather detailed demographic and psychographic data on the target market within the proposed geographic area. This includes analyzing factors such as population size, age distribution, household income levels, spending habits, and lifestyle preferences. By leveraging market research tools and industry benchmarks, the company can identify key customer segments and their unique needs, preferences, and pain points.

• Utilize industry reports, consumer surveys, and local market data to gather comprehensive insights on the target market.
• Engage with potential customers directly through focus groups, interviews, and online surveys to better understand their shopping behaviors and preferences.
• Analyze foot traffic patterns, tenant mix, and sales performance of existing shopping malls and retail centers in the target area to identify unmet customer needs.

With a deep understanding of the target market, MallCraft can then develop a unique value proposition that sets its shopping mall and retail center projects apart from the competition. This may involve incorporating innovative design elements, curating a diverse tenant mix, or integrating cutting-edge technologies to enhance the customer experience.

By aligning its development plans with the specific needs and preferences of the target market, MallCraft can ensure that its shopping malls and retail centers become destinations of choice for consumers. This, in turn, will contribute to higher occupancy rates, increased rental income, and ultimately, a more successful and profitable business venture.

Assess the Competitive Landscape and Identify Unique Value Proposition

Conducting a thorough analysis of the competitive landscape is a crucial step in developing a comprehensive business plan for a shopping mall and retail center construction project. By understanding the existing market dynamics, MallCraft Constructors can identify opportunities to differentiate its offerings and establish a strong competitive edge.

The first step is to research the key players in the shopping mall and retail center construction industry . This includes examining the portfolios, design approaches, and value propositions of established construction firms, as well as up-and-coming players in the market. Analyzing their project timelines, budgets, and client satisfaction levels can provide valuable insights into industry benchmarks and best practices.

• Utilize industry reports, trade publications, and online databases to gather comprehensive data on the competitive landscape.
• Attend industry events and conferences to network with peers and stay up-to-date on the latest trends and innovations.
• Conduct interviews with key stakeholders, such as developers, retailers, and industry experts, to gain first-hand insights into the market's needs and pain points.

Next, MallCraft Constructors should assess the unique needs and preferences of the target market . By understanding the evolving demands of modern shoppers, the company can identify opportunities to differentiate its offerings. This may include incorporating sustainable design elements, integrating cutting-edge technologies, or creating versatile spaces that cater to a diverse range of retail tenants.

For example, recent industry data suggests that more than 70% of consumers prioritize sustainability and eco-friendly features when selecting a shopping destination . By positioning itself as a leader in sustainable construction practices, MallCraft Constructors can appeal to this growing segment of the market and offer a compelling value proposition.

Additionally, the integration of smart technologies, such as AI-powered navigation systems and seamless omnichannel experiences, can set MallCraft Constructors apart from competitors . By incorporating these innovative elements into its shopping mall and retail center designs, the company can enhance the customer experience and appeal to tech-savvy consumers.

• Conduct customer surveys and focus groups to gather insights into the target market's preferences and pain points.
• Analyze industry trends and consumer behavior data to identify emerging opportunities and shifting market demands.
• Engage with industry partners, such as retailers and technology providers, to explore collaborative solutions that can deliver unique value to clients.

By thoroughly assessing the competitive landscape and aligning its offerings with the unique needs of the target market, MallCraft Constructors can develop a compelling value proposition that sets it apart from the competition. This strategic approach will be crucial in securing a strong foothold in the dynamic shopping mall and retail center construction industry.

Determine the required resources, equipment, and workforce

Constructing a successful shopping mall or retail center requires a comprehensive assessment of the necessary resources, equipment, and workforce. This crucial step in the business planning process ensures that MallCraft Constructors can effectively execute the project and meet the unique demands of the industry.

To determine the required resources, MallCraft must first conduct a thorough analysis of the project's scope, including the size of the mall, the number and type of retail units, and any additional amenities or features. This information will help the company identify the specific materials, equipment, and labor needed to complete the construction.

For materials, MallCraft should consider factors such as the square footage of the mall, the type of flooring, walls, and ceilings required, as well as the necessary fixtures and furnishings. According to industry data, the average cost of materials for a 100,000 sq ft shopping mall can range from $20 to $30 million , depending on the level of finishes and amenities.

The equipment needed for a shopping mall or retail center construction project can include heavy machinery, such as cranes, excavators, and bulldozers, as well as specialized tools and technologies for tasks like electrical work, plumbing, and HVAC installation. Industry experts estimate that the equipment costs for a 200,000 sq ft retail center can range from $5 to $10 million .

Determining the required workforce is equally important, as the success of the project depends on having the right team in place. This includes skilled tradespeople, such as electricians, plumbers, and carpenters, as well as project managers, architects, and engineers. According to industry data, a typical 150,000 sq ft shopping mall construction project may require a workforce of 200 to 300 workers , depending on the complexity of the design and the timeline of the project.

• Conduct a detailed analysis of the project's scope to accurately identify the required resources, equipment, and workforce.
• Consult industry benchmarks and data to estimate the typical costs and workforce needs for shopping mall and retail center construction projects.
• Allocate sufficient budget and resources to ensure the project is completed on time and within the specified quality standards.

Evaluate the financial feasibility and potential revenue streams

Evaluating the financial feasibility and potential revenue streams is a critical step in the development of a comprehensive business plan for a shopping mall and retail center construction project. This analysis will help determine the viability of the venture, identify potential risks, and guide the creation of a robust financial strategy.

To assess the financial feasibility of the MallCraft Constructors project, the first step is to conduct a thorough market analysis. This includes gathering data on the target market, such as population demographics, consumer spending patterns, and the overall retail landscape in the proposed geographic area. By understanding the market's size, growth potential, and demand for retail space, MallCraft can better estimate the potential revenue streams and assess the project's long-term profitability.

Next, MallCraft must develop a detailed financial model that takes into account the various costs associated with the construction and operation of the shopping mall or retail center. This includes land acquisition, construction expenses, ongoing maintenance, utilities, staffing, and other operational costs. By carefully estimating these expenses, MallCraft can determine the initial capital investment required and project the long-term financial performance of the project.

An essential component of the financial analysis is the identification of potential revenue streams. For a shopping mall or retail center, these may include rental income from tenants, revenue from common area maintenance fees, parking fees, and potential revenue from ancillary services or amenities, such as a food court or entertainment venues. MallCraft must carefully analyze these revenue streams, taking into account factors such as occupancy rates, lease terms, and the competitiveness of the local market.

• Benchmark the financial performance of similar shopping mall and retail center projects in the region to gain insights into realistic revenue projections and operating costs.
• Conduct a sensitivity analysis to understand how changes in key variables, such as occupancy rates or rental rates, could impact the project's overall financial viability.
• Explore opportunities to diversify revenue streams, such as incorporating mixed-use elements or leveraging technology-driven solutions to enhance the shopping experience and generate additional income.

By conducting a thorough financial analysis, MallCraft Constructors can determine the project's overall economic feasibility, identify potential risks and challenges, and develop a comprehensive financial plan that includes detailed projections, cash flow statements, and funding requirements. This analysis will be a crucial component of the business plan, guiding the decision-making process and helping to secure the necessary financing for the project.

According to industry data, the global shopping mall market is expected to grow at a CAGR of 4.5% from 2021 to 2028 , reaching a value of $1.3 trillion by 2028 . Furthermore, a recent study by the International Council of Shopping Centers found that the average occupancy rate for U.S. shopping malls is around 93% , indicating a strong demand for retail space. By carefully evaluating the financial feasibility and potential revenue streams, MallCraft Constructors can position itself to capitalize on these favorable market conditions and develop a successful shopping mall or retail center project.

Identify Potential Locations and Assess Site Selection Criteria

Selecting the right location is a crucial step in the development of a successful shopping mall or retail center. The site selection process requires a comprehensive analysis of various factors to ensure the long-term viability and profitability of the project. For MallCraft Constructors, this step involves a thorough examination of the target market, competitive landscape, and site-specific characteristics.

When identifying potential locations, MallCraft Constructors first conducts a detailed market analysis to understand the demographics, consumer behavior, and spending patterns of the target audience. This includes evaluating factors such as population size, income levels, population growth trends, and the presence of existing retail hubs. By understanding the target market, MallCraft can identify areas with the greatest potential for a thriving shopping mall or retail center.

Next, MallCraft assesses the competitive landscape by analyzing the existing shopping malls and retail centers within the target market. This involves evaluating factors such as the size, tenant mix, and performance of competing properties. MallCraft also considers the potential for market saturation and the ability to differentiate its offerings from the competition.

Once the target market and competitive landscape have been analyzed, MallCraft turns its attention to the site-specific characteristics. The company evaluates factors such as accessibility, visibility, parking availability, and the potential for future expansion. MallCraft also considers the infrastructure and utilities available at the site, as well as any potential environmental or zoning restrictions.

• Conduct a thorough analysis of the target market to identify areas with the greatest potential for a successful shopping mall or retail center.
• Assess the competitive landscape to identify opportunities for differentiation and avoid market saturation.
• Evaluate site-specific characteristics, such as accessibility, visibility, and infrastructure, to ensure the long-term viability of the project.

By carefully analyzing the target market, competitive landscape, and site-specific characteristics, MallCraft Constructors can identify the most promising locations for its shopping mall and retail center development projects. This comprehensive approach helps the company make informed decisions and maximize the chances of success for its clients.

For example, MallCraft's analysis of the Midwest region revealed a growing population with a rising disposable income, coupled with a limited number of high-quality shopping malls. By identifying a site in a rapidly developing suburban area with excellent accessibility and visibility, MallCraft was able to secure a $75 million contract to build a 350,000 square foot shopping mall that is expected to attract over 5 million visitors annually .

Investigate Regulatory Requirements and Obtain Necessary Permits

Navigating the regulatory landscape is a critical step in the development of a successful shopping mall or retail center. As MallCraft Constructors embarks on this project, it is essential to thoroughly investigate the various local, state, and federal regulations that govern commercial real estate construction and operations.

The first step is to conduct a comprehensive review of the zoning and land use regulations in the proposed development area. This includes understanding the permitted uses, height restrictions, setback requirements, and any special overlay districts that may apply. Obtaining the necessary zoning approvals and permits can be a time-consuming process, so it is crucial to factor this into the overall project timeline.

In addition to zoning considerations, MallCraft Constructors must also secure a range of permits and licenses required for the construction and operation of the shopping mall or retail center. These may include, but are not limited to, building permits, occupancy permits, fire safety permits, environmental permits, and business licenses. Depending on the location and scope of the project, the specific requirements may vary.

• Familiarize yourself with the local building codes and construction standards to ensure compliance throughout the project.
• Establish a strong relationship with the relevant regulatory agencies to streamline the permit application and approval process.
• Consider hiring a specialized consultant or attorney to navigate the complex regulatory landscape and identify any potential roadblocks early on.

Another important consideration is the environmental impact of the shopping mall or retail center development. Depending on the location and the project's scope, MallCraft Constructors may need to obtain various environmental permits, such as those related to stormwater management, air quality, or wetland protection. Conducting a thorough environmental assessment and addressing any potential issues can help mitigate delays and ensure compliance with relevant regulations.

Finally, it is crucial to stay informed about any changes or updates to the regulatory environment throughout the planning and construction phases. Regularly monitoring industry news, attending industry events, and maintaining open communication with local authorities can help MallCraft Constructors anticipate and adapt to any shifts in the regulatory landscape.

By meticulously investigating the regulatory requirements and obtaining the necessary permits, MallCraft Constructors can lay the foundation for a successful shopping mall or retail center development project that aligns with all applicable laws and regulations.

Develop a Robust Network of Industry Partners and Suppliers

Establishing a strong network of industry partners and suppliers is a crucial step in the development of a successful shopping mall and retail center construction business. By cultivating these strategic relationships, MallCraft Constructors can ensure access to high-quality materials, specialized services, and industry-leading expertise to deliver exceptional projects.

To build this robust network, MallCraft should first identify and thoroughly vet potential partners across various sectors, including material suppliers, subcontractors, engineering firms, architectural designers, and property management companies. Careful selection of these partners is essential, as they will play a pivotal role in the overall success and profitability of the construction projects.

• Conduct thorough due diligence on potential partners, evaluating their track record, quality of work, and financial stability.
• Prioritize partners who share MallCraft's commitment to sustainability, innovation, and customer-centric design.
• Establish clear, mutually beneficial agreements that outline roles, responsibilities, and performance expectations.

Once the network of partners is established, MallCraft should work to nurture and strengthen these relationships over time. This can be achieved through regular communication, joint planning sessions, and collaborative problem-solving to address industry challenges. By fostering a culture of trust and collaboration, MallCraft can ensure a seamless integration of services and a shared vision for delivering exceptional shopping mall and retail center projects.

Importantly, MallCraft should also actively monitor and manage its supplier relationships, continuously evaluating the quality, timeliness, and cost-effectiveness of the materials and services provided. This vigilance will help the company maintain a competitive edge and adapt to evolving market demands, ensuring that its projects remain at the forefront of the industry.

By developing a robust network of industry partners and suppliers, MallCraft Constructors can leverage the collective expertise and resources of the industry, ultimately enhancing its ability to deliver innovative, sustainable, and technologically advanced shopping mall and retail center projects that meet the needs of modern consumers.

Secure Funding Sources and Create a Financial Plan

Securing adequate funding is a critical step in bringing the Shopping Mall and Retail Center Construction project to life. MallCraft Constructors must carefully assess its financing options and develop a comprehensive financial plan to ensure the venture's long-term viability and success.

The first step is to conduct a thorough feasibility analysis to determine the project's capital requirements. This analysis should consider factors such as land acquisition costs, construction expenses, equipment and technology investments, and operational expenses. By accurately estimating these costs, MallCraft can identify the funding gap that needs to be filled through external sources.

Once the funding requirements are established, MallCraft should explore various financing options , including traditional bank loans, commercial real estate investment trusts (REITs), private equity funds, and government incentives or subsidies. Each option has its own set of advantages, risks, and eligibility criteria, so MallCraft must carefully evaluate them to find the most suitable fit for the project.

• Leverage relationships with local banks and financial institutions to secure favorable loan terms and conditions.
• Investigate government-backed financing programs, such as Small Business Administration (SBA) loans or tax increment financing (TIF), which can provide additional support for commercial real estate projects.
• Engage with experienced real estate investment professionals to explore alternative funding sources, such as crowdfunding platforms or private investors.

In parallel with securing funding, MallCraft must develop a detailed financial plan that outlines the project's projected revenue streams, operating expenses, and cash flow projections. This plan should include a sensitivity analysis to assess the impact of various market conditions and potential risks on the project's financial viability.

The financial plan should also incorporate a comprehensive budget that covers all aspects of the project, including land acquisition, construction, equipment, technology, marketing, and ongoing operations. By meticulously planning and monitoring the financial aspects of the project, MallCraft can ensure that the Shopping Mall and Retail Center Construction venture remains on track and financially sustainable.

• Engage with experienced financial advisors and consultants to help develop a robust financial plan that accounts for industry-specific considerations and best practices.
• Regularly review and update the financial plan to adapt to changing market conditions and ensure the project's long-term financial health.
• Establish clear financial reporting and monitoring systems to track the project's progress and make timely adjustments as needed.

By securing the necessary funding and creating a comprehensive financial plan, MallCraft Constructors can lay the foundation for a successful Shopping Mall and Retail Center Construction project. This step not only ensures the venture's financial viability but also demonstrates the company's commitment to responsible and sustainable development in the industry.

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• What Are Nine Strategies To Effectively Promote And Advertise A Shopping Mall and Retail Center Construction Business?
• The Complete Guide To Shopping Mall And Retail Center Construction Business Financing And Raising Capital
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• How To Sell Shopping Mall and Retail Center Construction Business in 9 Steps: Checklist
• Financial Framework: How To Manage The Costs Of Building A Shopping Mall
• What Are The Key Factors For Success In A Shopping Mall and Retail Center Construction Business?
• Valuing a Shopping Mall and Retail Construction Firm
• How to Build a Shopping Mall with No Money: Step-by-Step Guide

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Shopping Mall Design [Floor Plan and Layout Included]

By: Author Tony Martins Ajaero

Home » Business ideas » Real Estate Industry » Shopping Mall

There are a wide range of reasons why shopping malls have excelled across the globe. One of those reasons is that it ensures that consumers can make choices from the wide assortment choices of merchandise spread across various categories.

However, it is important to note that shopping malls have grown past the stage of offering consumers just shopping platforms.

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These days, you will find that shopping malls are where people love to spend their time. They now feature facilities such as game rooms and gaming arenas, movie theaters, multiplexes, and book shops. Many now include eateries encompassing fine dining restaurants, fast food corners, dessert points, or even coffee shops.

Steps to Design a Shopping Mall

Market Research and Feasibility Study

Same as with starting any other business, you need to first start by carrying out extensive market research to ensure you have a good insight into the local demographics and consumer behavior, in addition to the retail trends within the location where you intend to build the shopping mall. Evaluate and fully understand the economic viability of the project.

Take your time to carry out a feasibility study to assess the demand for a shopping mall while also taking into consideration factors such as population growth, income levels, and competition from shopping centers already in business.

Site Selection and Zoning Compliance

The proper market research will ensure you are knowledgeable enough to pinpoint the right location to build the shopping mall.

Choose the ideal location for your business based on the market research findings, accessibility, as well as zoning regulations. You have to ensure that the location or site you choose is well situated to guarantee easy transportation access.

Also, check to verify that the location is in line with zoning laws and regulations. Don’t forget to obtain all the requisite permits necessary for the development of the shopping mall.

Work with local authorities to fully comprehend and comply with all building codes, environmental requirements, as well as land use restrictions.

Architectural Design and Layout Planning

You should leverage the expertise of well-experienced architects and urban planners to design a visually alluring and functional layout. Take into account vital factors like traffic flow, parking facilities, and space utilization.

Also endeavor to come up with a comprehensive architectural plan that features the layout of stores, common areas, entertainment spaces, and amenities.

Don’t skip on creating an attractive environment that brings in customers while also boosting the overall shopping experience.

Tenant Mix and Leasing Strategy

It is also essential you take your time to come up with a diverse and mind-blowing tenant mix to ensure that you can attract attention while also satisfying the varying needs of your target audience. Take into consideration a balanced combination of anchor tenants, specialty shops, restaurants, and entertainment venues.

Don’t forget to put in place a strategic leasing strategy to draw in well-known retailers and guarantee a dynamic and vibrant atmosphere within the mall. Make sure to work out lease terms that are equally beneficial for both the mall management and tenants.

Technology Integration and Sustainability

When designing a shopping mall, it is very essential in this age that you incorporate technology to boost the general shopping experience.

Consider putting in place smart parking solutions, digital signage, as well as functional mobile apps to boost wayfinding and awareness about the shopping mall.

Also, leverage sustainable design principles to limit any impact the mall might have on the environment. Utilize energy-efficient lighting, green spaces, and eco-friendly construction materials.

Tips for Shopping Mall Floor Plan, Layout and Dimension

Understanding Target Audience and Demographics

Before designing the floor plan of the shopping mall, you must understand your intended audience as well as the demographics of the local community. This is very essential if you want the mall layout to be efficient enough to cater to the preferences and needs of shoppers.

For example, note that a shopping mall in an urban setting can possess some entirely different requirements especially when put in comparison with one in a suburban area.

Zoning for Maximum Engagement

Vone various areas within the mall to boost customer engagement. For instance, consider placing high-traffic retailers as well as popular brands close to the entry point of the mall to draw in substantial foot traffic.

You can also design themed zones or sections within the mall, which would include a dining court or entertainment area since they are known to boost the general shopping experience and motivate visitors to move around and explore.

Flexible Spaces for Retailers

Keep in mind that flexible retail spaces make it easy to accommodate a wide array of store sizes. This gives room for versatility especially when it comes to leasing, guaranteeing that the mall will draw in a vast array of retailers, from small boutiques to large department stores.

Also, seek ways to utilize modular elements in the floor plan because it will work to ensure easy adjustments and make it possible for the mall to align with evolving market demands.

Efficient Circulation and Traffic Flow

Make sure that all the pathways are big or adequate to fit in foot traffic, particularly during holidays or sales events. Don’t also forget to position escalators, elevators, as well as staircases to guarantee easy and premium accessibility as well as reduce any possible congestion. Keep in mind that a properly crafted layout ensures customers have a fun and productive shopping experience.

Adhering to Regulatory Standards and Accessibility

Make sure you fully understand local building codes and regulations. Don’t forget to consider accessibility for persons with disabilities by installing ramps, elevators, as well as designated rest areas.

Conforming with safety standards is very important, and this will most often necessitate the installation of emergency exits, lighting, and ventilation.

Aside from legal adherence, note that these stipulated requirements also work to bolster the overall safety and comfort of the shopping environment.

Factors to Consider When Designing a Shopping Mall

There are essential factors you will want to take into consideration when designing a shopping mall. Although the main intention is to design a place where people will be happy to visit, these factors will ensure you have a visually appealing mall that resonates with the interests of your target audience.

Demographic Analysis and Target Market

Carry out an extensive demographic analysis particularly since it will form the foundation of a successful design. Take your time to evaluate the age, income levels, and lifestyle, coupled with the preferences of the target market.

Be sure to understand the surrounding community as well as its evolving dynamics, ensuring that the mall’s design aligns appropriately with the needs and desires of the local population.

Retail Mix and Tenant Selection

In this line of business, the amount of success you can achieve will more or less depend on the mix of retailers and brands. Ensure to have a varying and well-curated retail mix that meets the numerous needs and interests of your consumer.

Don’t forget to take great care when choosing your tenants, and you will want to do this based on their brand reputation, market relevance, as well as their ability to attract foot traffic.

Having a good balance of anchor stores with niche boutiques ensures you have a functional shopping environment that will draw in a wide array of consumers.

Technology Integration and Omnichannel Experience

You can’t underestimate the need to inculcate and effectively use technology in shopping mall design and operations. Make sure that the infrastructure supports robust Wi-Fi connectivity, and seamless mobile payments, while also providing interactive elements including digital signage and augmented reality.

It is also possible to boost the shopping experience by leveraging an omnichannel approach that integrates online and offline retail, ensuring that consumers will have a seamless and fun shopping adventure.

Sustainability and Environmental Considerations

It is also important you adopt eco-friendly practices when designing a shopping mall. This can include energy-efficient lighting, and green spaces, coupled with sustainable materials in construction. Don’t forget to work on waste reduction and recycling initiatives.

Aside from its widely known appeal to environmentally conscious consumers, keep in mind that it ensures that the shopping mall conforms to broader sustainability goals.

Accessibility, Amenities, and Experience

A shopping mall without the right access is already dead on arrival. Owing to that, you must design the mall with easy navigation, ample parking, and numerous entry points.

Ensure to make available the right amenities, which would include comfortable seating areas, family-friendly spaces, as well as properly designed restrooms.

Ensure to design a welcoming atmosphere by leveraging attractive and visually pleasing landscaping, artwork, and architectural features.

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Build a mall – complete guide (costs, construction & financing).

 December 24, 2019

If you want to build a mall, you’ll need the answers to many questions. For example, how much does it cost to build a mall? How much does it cost to build a small strip mall? What expertise do you need to build a shopping mall and how to build a strip mall? What’s involved if you want to build a shopping center?

This article addresses all of these questions and discusses shopping mall financing, including how Assets America ® can help. We also answer some frequently asked questions about how to build a mall.

Reem Mall Construction Time Lapse – June 2018

How Assets America ® Can Help

Assets America ® can finance your shopping mall with loans starting at $20 million. There is virtually no limit to the amount of financing we can arrange. Importantly, we have decades of experience financing all sorts of shopping malls and high-end commercial projects.

Our deep network of private investors and banks can most often provide financing even when your bank turns you down. Don’t make a move until you speak with us first. We will be happy to confer with you on a confidential, no-obligation basis. So please call us at 206-622-3000 or simply fill out the form below and expect a very quick response.

Apply For Financing

Types of malls.

Before discussing how to build a mall, it’s important at the outset to define the various types of malls.

A general term encompassing properties such as a shopping mall, shopping complex, strip mall, or pedestrian street.

Shopping Center/Mall/Complex

This is a series of one or more buildings containing shops, adjacent parking, and interconnected walkways. Usually, the shops are indoors. Shopping malls may contain entertainment and dining venues. They can range in size from neighborhood centers to super-regional centers.

An open-air shopping center usually arranged in a single row of stores fronted by a sidewalk. Typically, developers build strip malls as a unit accompanied by suitable parking facilities. Many are separate from pedestrian connections and rely on cars and mass transit. Power centers are large strip malls.

This is a marketplace, public square, or similar open space. It may include streets closed off to vehicular traffic.      

Outlet Mall

A mall in which manufacturers sell their wares directly to the public, usually at discount prices.

How Much Does It Cost to Build a Mall?

It’s not cheap to build a mall. The national average is $24.9 million for a medium-sized shopping mall , not including land purchase and clearing. To build a mall, demolition may be necessary, and this will add significantly to the total cost.

A typical mall has four anchor stores, two floors, and 56,000 square feet. Naturally, mall sizes and costs vary greatly according to size, site conditions, construction techniques, tenants, amenities, and location.

Mall construction requires the participation of an owner/developer, architects, general contractor, and subcontractors. Typically, malls use “best” quality building techniques and materials in order to minimize bonding and insurance costs.

Of the average $24.9 million total cost, the breakdown is:

The average construction costs are $442 per square foot , although costs range from $225 to $450 per square foot . These cost estimates assume that labor belongs to unions without mob control.

Non-unionized labor has the following national average costs:

Breakdown of Costs

To calculate “How much does it cost to build a mall?”, account for the following types of typical costs:

• Acoustic ceilings, suspended
• Brick face, stucco, or stone exteriors
• Communication systems
• Concrete foundation
• Display fronts with aluminum/glass double doors, bulkheads, finished walls, and lighting
• Doors and partitions
• Floors covered with carpet and sheet vinyl
• Fluorescent lighting, recessed
• Gypsum-board interior walls
• HVAC equipment and suspended ducts
• Office space and mezzanines
• Security and safety systems
• Six plumbing features per 4,000 square feet
• Stairwells, escalators, and passenger and freight elevators
• Steel roofs with plywood sheathing and five-ply insulation

Architect Costs

Typically, architects will consume about 17% ($4.23 million) of the total budget to build a mall. In return, you receive the following services:

• Develop/ascertain project budget
• Draft plans for proposed work
• Create schematics and floor plans
• Interface with structural engineers and governmental planning agencies
• Finalize all details for drawings, materials, and finishes
• Serve as or work with the project manager
• Obtain permits
• Advise about selection of contractors and bids
• Complete all documents necessary for construction

Contractor Costs

Without a doubt, the contractor is responsible for the daily management of the project. Typically, contractor cost comprises 14% ($3.49 million) of the total budget. In addition, a contractor might extract $3+ million in indirect fees and markups. Contractor tasks include:

• Procuring all materials and services
• Selecting and hiring subcontractors
• Collaborating with the architect and the owner to evaluate plans
• Pulling all permits for work and installation of utilities
• Overseeing all construction
• Providing final cleanup of the construction site

How Much Does It Cost to Build a Small Strip Mall?

Unsurprisingly, a small strip mall is less expensive to build. Usually, it consists of a street lined with attached stores and on-street parking. You don’t have to spend money on interconnecting walkways other than the main front thoroughfare. Nor do you have to build parking structures, although you certainly can if that is part of your plan.

There won’t be elaborate food courts and other amenities you would typically find in a shopping complex. You must choose what kind of tenants will be located at the strip mall and price your construction accordingly. Clearly, you may have to minimize costs if your mall comprises down-market stores. For example, these may include:

• Vintage clothing shops
• Dollar stores
• Resale shops
• Bail bonds providers
• Liquor stores
• Blood purchase services
• Tattoo parlors
• Laundromats
• Discount shoe stores
• Food banks and soup kitchens
• Payday lenders and check cashers
• Walk-in injury lawyer storefronts
• Bakery outlets
• Animal pounds
• Teenage addiction counseling clinics

Clearly, your rental income projections must account for the types of tenants you attract. These projections may tempt you to cut corners during construction, but nevertheless, you must build to the minimum safety codes. Typically, a minimum-cost small strip mall might cost about $250/square foot to build .

How to Build a Strip Mall or Shopping Center

There are a series of steps you will need to build a shopping mall, including the following items.

1. Site Selection

You must choose the land upon which you’ll construct your mall. Naturally, you want a location that is easy to access, and not too far from a nearby center. Also, it should provide space for parking and not create local traffic congestion.

The location should be convenient for access by your targeted market. Will your targeted customers be able to afford shopping at the tenant shops at the mall? Frankly, some malls appeal to average-to-low-income customers, while others will market to the rich, educated elite.

Undoubtedly, another factor is age. Will you be targeting teenagers and young adults, or will you favor mature adults and seniors? Perhaps you’ll go after a mix of all types of customers, but you’ll need to consider the pros and cons.

A mall that appeals to everyone may appeal to no one. However, a mall that targets a slice of the consumer market may be limiting its traffic.

2. Characteristics and Amenities

Your mall plans may follow a theme and include amenities like restaurants and other service providers. Will the mall have something different or unique to attract customers? You should research existing malls to see how they address these issues. Clearly, you need to discover which approaches work and which don’t.

In addition, your research will include technical aspects such as tenancy mix, footfalls, best practices, and so forth. A major decision will be the size of the mall and the intended anchor tenants.

The branding of your mall depends on its tenants, characteristics, and amenities. These incur costs beyond construction, but your branding plans can influence how you build the mall.

For example, a mall with small discount stores looks quite different from one with upscale department stores and boutiques. Naturally, your construction budget might be much lower if your mall consists of down-market tenants. These might include dollar stores, used-book stores, furniture consignment shops, and charitable recycled merchandise stores.

There is no reason that this type of mall will be less profitable than an upscale mall. However, a down-market mall should minimize costs. This may include average-to-budget materials, non-unionized labor, and unskilled workers.

3. Operational Aspects

Your building plans should account for the special requirements of a mall. For instance, you may need to include special facilities to support mall security that operates 24/7. You might want to include a first-aid center to handle on-site injuries. You’ll also have to provide for cleaning and maintenance operations.

Some malls have on-site property managers and tenant recruiters. The extent to which your mall will have on-site support operations will most certainly affect the cost of construction.

Another operational aspect that affects construction costs is your IT & technology plans. New malls definitely favor high technology to deliver features like customer Wi-Fi and integrated security monitoring. This may require extra cabling and devices that add to the cost but pay for themselves over time.

Shopping Mall Financing

Some shopping mall developers may be self-financing from equity. That is, they use retained earnings to pay for new shopping mall construction. However, most mall projects require debt financing.

Frequently, a developer may choose to recruit investors. Clearly, this requires you to estimate a return on investment, break-even point, and payback period. Then you must decide how to attract investors who will allow you to run the project your way. You will need mechanisms to resolve disputes with minimal disruption.

Your budget is the starting point. You must conduct a feasibility study to verify that the budget is sufficient under various scenarios. To be clear, a sensitivity analysis tests your cost and revenue assumptions under positive and negative conditions.

The output is a series of pro forma balance sheets, P&L statements, cash flow statements, and financial ratios. Doubtlessly, investors may be interested in seeing all of this material before signing on to the deal. However, you might not want to share projections you judge to be unlikely.

You can potentially offload some of these concerns if you use a loan broker such as Assets America ® .

Frequently Asked Questions

Are shopping malls a smart commercial property investment.

Yes, shopping malls can be an excellent property investment if you do your homework first. Substantial due diligence is an involved process that requires access to data and expert analysis. You must make sure you pay the right amount and receive the appropriate return on your investment.

How long does it take to build a shopping mall?

The time from initial concept to space leasing can take 2 to 5 years or longer. Obviously, if municipal financing is involved, multiply your time estimates several times. Tellingly, the American Dream Mall in the New Jersey Meadowlands took 16 years to go from concept to operation.

What’s the difference between a mall and a shopping complex?

Usually, a mall contains enclosed structures. Whereas a shopping complex may have open-air complexes in addition to enclosed structures. Indeed, both types of properties feature large parking facilities and must deal with traffic challenges.

What’s the difference between a plaza and a mall?

A plaza is usually an outdoor facility, although it may have a covered roof. Simply, plazas may be areas that allow for mobile vendors such as food trucks and flea markets. Most malls are indoor facilities, although they might have outdoor components as well.

What’s the difference between a mall and an outlet?

A mall usually has a wide mix of merchants. However, an outlet mall features the retail stores of manufacturers. Also, it may contain off-price merchandise from department stores. Consumers patronize outlet malls when they are looking for name brand merchandise at reduced prices. 

Helpful Resources

• First, read this enlightening article from McKinsey & Company on The Future of Building Shopping Malls .
• In addition, you can read this Fodor’s article on the best shopping centers in the world if you’re looking for inspiring ideas to build a mall .
• Finally, there’s a Havard research article called Where Should We Build a Mall? The Formation of Market Structure and Its Effect on Sales .

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7 Steps to Creating a Shopping Mall Construction Plan

Shopping malls have been a key component of the retail industry for over 100 years. With the rise of e-commerce, malls remain an important gathering place for people who want to experience shopping and entertainment. However, creating a shopping mall construction plan is a challenging task. This process involves a significant amount of research, planning, coordination, and execution. 

In this blog, we will outline seven essential steps involved in creating a shopping mall construction plan.

Site Selection and Analysis

Location is everything regarding any real estate purchase, especially in the retail industry. Not only does the location need to be close to populated areas, but it also needs to be in the right market. During the site selection, the developer, architect, and visionary will weigh the proposed land’s pros and cons. The site analysis will examine zoning, soil type, and other environmental concerns. It will also look at population demographics essential to attracting the right retail and entertainment tenants. Building on the wrong type of land or in an area with special ordinances can deter potential investors and retailers.

Design and Vision

The right land can majorly impact the overall design of a shopping mall. The lot’s size will determine the building’s size and consider the customer’s needs, including parking, pedestrian and public transit access, and safety. The mall’s layout should also consider the location of anchor stores, specialty stores, food courts, and additional entertainment, such as movie theaters. 

During the design phase, the architects will work with the customer to bring their vision to life in drawings and 3D models. The design phase for a large-scale project like a shopping mall can take several months with multiple rounds of revisions. This phase is crucial to the project as it can help bring in early investors and store renters.

Financing and Budgeting

The financing and budgeting step is critical to determine the project’s feasibility. The budget should include all costs associated with the construction, including land acquisition, permits, design, and construction. Other considerations to include in your budget are marketing and a contingency budget to account for any potential unoccupied storefronts.

After finalizing designs and costs, the next step is securing additional funding. Large commercial properties used for retail and entertainment can be a lucrative opportunity. Obtaining early funding will help bring the project one step closer to reality. Having additional capital can also help retailers feel secure that you are willing to invest in their location’s upkeep, security, and safety.

Permits and Approvals

Before breaking ground, the next step is to obtain the necessary permits and approvals from the local governing authorities. This step involves obtaining a construction permit, environmental permit, and other regulatory approvals. Additionally, you will need insurance coverage before the project starts. Depending on the provider, you may need coverage for the project, materials, workers, and land.

Construction and Project Management

Shopping mall construction can take months to a year or two to complete. During this time, the project manager can help ensure everything runs smoothly. It is important to vet your project manager and choose one with experience in large-scale and preferably retail/shopping mall construction. An experienced project manager can greatly improve the flow of the project. Commercial construction involves many elements, including site preparation/excavation, foundation work, framing, electrical and plumbing work, and finishing.

Tenant and Store Selection

In some cases, tenant selection can begin during the construction phase. Larger retailers may want or have specific requirements before agreeing to sign a lease. Regardless, most tenant selection begins once the building is complete. This step involves negotiating leases, selecting tenants that fit the mall’s concept well, overseeing the store build-out process, and advertising. 

Some retailers may work with the original builders to design a storefront to their specs. At the same time, franchises may be bound to work with specific crews that are trained according to company policy. 

Marketing and Grand Opening

Once stores are selected and occupancy reaches satisfactory capacity, the final step is to market the shopping mall and plan the grand opening. While there may have been buzz build-up as soon as you break ground, the big reveal will require much more planning. The final marketing campaign should be designed to attract customers and create buzz around the mall’s opening. The grand opening should be well-planned and executed to ensure a successful launch. It may include collaborating with tenants to help promote their specials and giveaways for the big event.

Creating a shopping mall construction plan is a complex process that involves many steps. It requires careful planning, coordination, and execution. Following these essential steps and working with an experienced team like Division 9 Commercial Construction , you can create a successful shopping mall that will attract customers and provide a unique retail and entertainment experience.

15 Key Shopping Malls Design Touchpoints: A Roadmap to Success

In the ever-evolving retail realm, shopping malls are vibrant consumer culture epicenters where commerce, entertainment, and community converge. Designing these sprawling havens of experience is an intricate dance that requires a harmonious blend of aesthetics, functionality, and a deep understanding of human behavior. In this article, we’ll embark on an exploration of the pivotal elements that transform mere brick and mortar into captivating destinations. From the artistry of layout planning that influences foot traffic flow to the strategic positioning of anchor stores that guide the shopping narrative, we delve into the essentials that architects, retailers, and enthusiasts must grasp to create thriving retail utopias. Join us as we unravel the secrets behind captivating mall atmospheres, immersive experiences, and the symbiotic relationship between architectural brilliance and commercial triumph.

© Terrence Zhang

Designing Shopping Malls: 10 Must-Have Mall Creation Insights

Whether you’re an aspiring designer, a seasoned retailer, or simply someone intrigued by the captivating charm of shopping malls, the following tips promise valuable insights into crafting spaces where shopping transcends mere transactions and transforms into an enchanting journey.

1) Entrance Elegance

First impressions matter, and shopping malls are no exception. A grand, inviting entrance sets the tone for the entire mall experience. Take the example of The Grove in Los Angeles, where a lush garden entrance welcomes visitors, making them feel like they’re entering a vibrant urban oasis.

© Thegrovela.com

2) Awe-Inspiring Atriums

Ah, the heart of the mall – the atrium. A soaring, open space bathed in natural light can be a game-changer. The Dubai Mall, with its breathtaking central aquarium, epitomizes this idea. It’s a mesmerizing focal point that draws shoppers in.

© Adobe Stock

3) Wayfinding Wonders

Have you ever felt like a mouse in a maze? That’s what poor wayfinding can do to mall-goers. Effective signage, intuitive layouts, and landmarks like distinctive sculptures (think the ‘Bean’ in Chicago’s Millennium Park) help visitors easily find their way.

Starlight Place / Aedas. Courtesy of Aedas

The Bean by Anish Kapoor. © Choose Chicago

4) Sensory Havens

Shopping Malls aren’t just about shopping; they’re sensory experiences. Soothing sounds, pleasant aromas, and even tactile elements can create a multi-sensory wonderland. The Mall of Emirates in Dubai boasts an indoor ski slope, treating shoppers to the touch of natural snow.

© Majid Al Futtaim

5) Diverse Dining Destinations

Let’s talk about food, shall we? A mall isn’t complete without a diverse range of dining options. From food courts to upscale restaurants, the array satisfies various cravings. Take Sweden’s Mall of Scandinavia, which houses a mind-boggling 22 restaurants in its “Eats” section.

MLC Centre Food Court / Luchetti Krelle. © Michel Wee

6) Tech-Savvy Integrations

In today’s digital age, malls must keep up with tech-savvy shoppers. Integrating smart technologies for seamless parking, interactive directories (like the Westfield Century City mall’s touchscreen maps), and even virtual fitting rooms enhances the overall shopping experience.

© Acquire Digital

7) Retail Theater

Shopping is an art, and malls are the stage. Engaging displays, creative window dressings, and pop-up shops transform shopping into an immersive experience. London’s Selfridges takes this to heart with its ever-changing, visually stunning window displays.

Photo courtesy of Selfridges

8) Kid-Friendly Zones

Happy kids make for comfortable shopping. Incorporating play areas, child-friendly facilities, and even educational spaces like museums or workshops can turn shopping malls into a family haven. The Mall of America, with its Nickelodeon Universe theme park, is a prime example.

© Jersey Digs

9) Green Retreats

Amidst the concrete jungle, a touch of green can be rejuvenating. Rooftop gardens, indoor landscapes, and even vertical gardens (check out Singapore’s Jewel Changi Airport ) infuse shopping malls with fresh air.

© Velvet Escape

10) Local Flair

Every mall has a unique story, and integrating local culture and artistry into the design can create a special connection with the community. The Grand Bazaar Shops in Las Vegas celebrates the city’s vibrant spirit with its dazzling blend of architecture and entertainment.

11) Social Spaces

Shopping Malls aren’t just about shopping; they’re about socializing too. Cozy seating areas, lounges, and event spaces encourage visitors to linger, connect, and make memories. Toronto’s Eaton Centre has a stunning urban park-inspired atrium that serves as a communal hub.

© Pantages Hotel

12) Accessibility for All

Designing with inclusivity in mind is a must. From ramps and elevators to sensory-friendly spaces for those with sensitivities, malls should be welcoming to everyone. Mall of India in Delhi even features braille signage and tactile paths for the visually impaired.

© Address of Choice

13) Sustainable Practices

With environmental concerns on the rise, sustainable design practices have become paramount. Incorporating energy-efficient lighting, recycled materials , and even renewable energy sources like solar panels showcases a commitment to a greener future.

Mega Foodwalk / FOS. © Rungkit Charoenwat

14) Thoughtful Traffic Flow

Have you ever felt like swimming against the current in a crowded mall? A well-planned traffic flow prevents congestion and ensures a seamless shopping experience. The Mall of the Emirates in Dubai strategically separates its luxury and casual sections to cater to different shopper preferences.

© Time Out Dubai

15) Future-Focused Flexibility

Lastly, shopping malls should have room to evolve. Adaptable spaces for changing retail trends, emerging technologies, and shifting visitor preferences ensure that the mall remains relevant for years. New York’s Hudson Yards is designed with modular spaces that can transform based on needs.

© Hudson Yards

In a nutshell, designing shopping malls is no small feat. It takes a keen eye for aesthetics, an understanding human behavior, and a deep commitment to creating a multi-sensory wonderland. From awe-inspiring atriums to sensory havens, diverse dining destinations to smart integrations, and everything in between, the tips shared in this article offer valuable insights into crafting spaces where shopping transcends mere transactions. By incorporating these must-have mall creation insights, architects, retailers, and enthusiasts can create thriving shopping malls that elevate the shopping experience and leave lasting impressions on visitors.

Tags: Mall Mall Design Modern Mall Design Public Architecture Shopping Center

University of Melbourne Student Pavilion | KoningEizenberg Architecture

Meadow House Maasland | JURY!

Cascada de Luz House | Studio Saxe

Hyparschale Building Hall – Conversion Refurbishment and Conservation | gmp Architects

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SHOPPING MALL BUSINESS PLAN TEMPLATE

Explore Options to Get a Business Plan.

Introduction

A shopping mall is a large, often indoor, building with various stores representing many different businesses. Shopping malls are usually located in high-traffic areas near busy intersections or along major highways. The first shopping mall in the United States was the Country Club Plaza in Kansas City, Missouri, which opened in 1922. Today, thousands of shopping malls in the United States are popular destinations for shoppers and tourists alike. If you are thinking about starting your shopping mall, there are a few things you need to know. First, you will need to find a suitable location. Second, you will need to obtain the necessary financing. And third, you will need to develop a business plan. Starting a shopping mall can be a rewarding and profitable venture with careful planning and execution.

Global Market Size

The global market for shopping malls is estimated to be worth $1.2 trillion in 2015, according to a report by JLL. The U.S. alone is home to over 1,200 malls, which account for about 10 percent of the country's retail space. Several factors have contributed to the growth of shopping malls around the world. One is the rise of the middle class in many countries, which has led to more people having disposable income to spend on shopping. Another is the growth of online shopping, which has made it easier for people to compare and find the best deals on products. Despite the growth of the shopping mall industry, malls face several challenges. One is the rise of e-commerce, which has made it easier for people to shop from the comfort of their homes. Another challenge is the economic slowdown in many countries, which has led to less spending on non-essential items like clothing and shoes. Despite these challenges, the shopping mall industry is expected to grow in the coming years. This growth will be driven by the continued rise of the middle class in many countries and the growth of online shopping.

Target Market

If you're thinking of starting a shopping mall business, one of the first things you need to do is identify your target market. Your target market is the group of people who are most likely to shop at your mall. To identify your target market, you need to consider a few factors, including:

-The location of your mall. If you're in a densely populated area, your target market will likely be different than in a more rural area.

-The type of products or services you'll be offering. If you're selling high-end fashion, your target market will be different than if you're selling budget-friendly fashion.

-The demographics of your potential shoppers. This includes factors like age, income, gender, and so on. Once you've considered all of these factors, you should have a good idea of who your target market is. You can start planning your marketing and advertising strategies to reach these potential shoppers.

Business Model

Many different business models can be used when starting a shopping mall business. The most common and successful model is the anchor tenant model. This model relies on having one or more large anchor tenants, such as a department store or a grocery store, that act as draws for customers. The anchor tenant(s) then leases space from the shopping mall owner, and the smaller stores in the mall lease space from the anchor tenant(s). This model is successful because it gives customers a reason to come to the shopping mall and smaller stores with a built-in customer base. Another standard business model for shopping malls is the specialty leasing model. In this model, the shopping mall owner leases space to a variety of different stores that all specialize in a specific type of merchandise. This can be anything from a mall specializing in clothing stores to a mall specializing in electronic stores. The advantage of this model is that it can be easier to attract customers to a shopping mall with a specific type of merchandise they are looking for. Whichever business model is used, it is essential to have a well-thought-out business plan for the shopping mall. This plan should include a detailed marketing strategy, a financial plan, and a plan for operations.

Competitive Landscape

As you develop your business plan and start to think about opening a shopping mall, it's essential to understand the competitive landscape. Who are your potential competitors? What are their strengths and weaknesses? How can you position your shopping mall to succeed in the face of competition? Here are a few things to keep in mind as you research the competitive landscape for your shopping mall business:

• Know your market. Before you can understand the competitive landscape, you need to have a good grasp of the market you're targeting. Who are your potential customers? What are their needs and wants? What are their shopping habits? The more you know about your target market, the better you'll understand the competitive landscape.
• Understand your competition. Once you know your market, it's time to start researching your potential competitors. Who are they? What do they offer? What are their strengths and weaknesses? What is their market share? The more you know about your competition, the better you'll be able to position your own business for success.
• Develop a competitive advantage. Once you understand the competitive landscape, you must develop a competitive advantage. What can you offer that your competitors don't? What can you do better than them? If you can't find a way to stand out from the crowd, your shopping mall is likely to struggle.
• Keep an eye on the future. The competitive landscape is constantly changing, so keeping an eye on the future is essential. What are new shopping malls being developed in your area? What changes are happening with your existing competitors? You'll be better prepared to adapt and change as the landscape shifts by staying ahead of the curve.

Now that you have all the information you need to start your own shopping mall business, it's time to take the next step. If you're unsure where to start, consider hiring a professional business consultant to help you get started. With the proper planning and execution, your shopping mall can be a success.

• Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
• Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
• Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
• Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
• Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
• Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
• Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
• Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
• Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
• Business plans allow you to position your brand by understanding your company’s role in the marketplace.
• Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
• Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.
• Executive Summary
• Company Overview
• Industry Analysis
• Consumer Analysis
• Competitor Analysis & Advantages
• Marketing Strategies & Plan
• Plan of Action
• Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

To complete your perfect Shopping Mall business plan, fill out the form below and download our Shopping Mall business plan template. The template is a word document that can be edited to include information about your Shopping Mall business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Website Design & Development for Shopping Mall Businesses

A Guide to Social Media for Shopping Mall Businesses

Shopping Mall Business Plan Template FAQs

What is a business plan for a/an shopping mall business, how to customize the business plan template for a shopping mall business, what financial information should be included in a shopping mall business plan, are there industry-specific considerations in the shopping mall business plan template, how to conduct market research for a shopping mall business plan, what are the common challenges when creating a business plan for a shopping mall business, how often should i update my shopping mall business plan, can i use the business plan template for seeking funding for a shopping mall business, what legal considerations are there in a shopping mall business plan.

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How to Start a Retail Store Business in a Shopping Mall

Last Updated: August 4, 2024 Approved

This article was co-authored by Gina D'Amore . Gina D'Amore is a Financial Accountant and the Founder of Love's Accounting. With 12 years of experience, Gina specializes in working with smaller companies in every area of accounting, including economics and human resources. She holds a Bachelor's Degree in Economics from Manhattanville College and a Bookkeeping Certificate from MiraCosta College. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 80% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 196,831 times.

Opening a retail store in a shopping mall can give you immediate access to an existing flow of potential customers. In addition, your store can benefit from the amenities and structures that already exist in the mall, freeing you from having to create your own. That said, for many stores, the mall is full of competitors that sell similar products. This means that you'll have to price your products competitively and draw customers into your store. Setting up a store in this way is relatively straightforward if you use the following steps.

Planning Your Store

• For example, a store selling expensive, handmade men's shoes would not do well in a mall frequented by mostly lower-income customers.

• For example, an underserved demographic in a given market might be plus-size people or Latin Americans. If you notice a lack of stores serving a particular group in the mall, consider building your offerings around that group. [1] X Research source

• A franchise may be relatively simpler to open, but will limit your own freedom to make business choices. In addition, you usually have to pay a large, upfront franchise fee and make regular payments to the franchisor.

• Your store name should be trademarked.
• Your business name, on the other hand, is the legal name of your business, used on official documents like taxes and your lease contract. If your business is a sole proprietorship, your name is the business name.

Working Out Your Finances

• Some places may ask for multiple months of utility and rent payments upfront.
• Next, work with a floor planner and interior designer to determine the cost of upgrading the interior of your store to meet your needs.
• Consider other expenses you will have to pay before opening, like any materials you will have to buy and inventory costs. Also, consider technology costs—you'll have to purchase some method of collecting payments from your customers.
• Finally, think about monthly expenses you might have, such as paying employees and spending on marketing or public relations. [4] X Research source
• Understand the difference between a fixed cost and a variable cost.
• The costs that do not change every month are called fixed costs. For example, the rent, utilities, and payroll.
• The costs that change every month, such as marketing expenses, are known as variable costs.

• For more, see how to fund a business.

Deciding on a Location

• You should also try to locate your store near complementary stores. For example, a jewelry store might want to locate next to an upscale department store. That way, the stores can attract customers to the same corner of the mall together and both benefit from the targeted traffic they receive.

• Kiosks sit in the middle of mall concourses and usually showcase smaller goods, like phone accessories, jewelry, or watches.
• Mall carts, also called retail merchandising units (RMUs), are smaller than kiosks and are located in common areas within malls. They allow for displays of smaller items and can be used to provide simple services like engraving or watch repair.

Opening for Business

• Remember to create a place for your most important or fastest-selling inventory in a dominant position at the front of the store, right in front of the door. [9] X Research source

• Even experienced retail employees will need training in your specific products and in how you wish them to interact with customers.

• Alternately, you can hold a "soft opening" first, where systems and employees are tested before announcing a grand opening. This guarantees that your store is properly functioning before the grand opening.

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Thanks for reading our article! If you'd like to learn more about investments, check out our in-depth interview with Gina D'Amore .

• ↑ https://www.nypl.org/sites/default/files/retail_101_nypl_copy.pdf
• ↑ https://www.inc.com/guides/2010/05/choosing-a-franchise-location.html
• ↑ https://www.inc.com/articles/201108/business-start-up-costs-retail-store.html
• ↑ http://fitsmallbusiness.com/lease-retail-space/

About This Article

Starting up a retail store in a shopping mall is a lot of work, but you can set yourself up for success with the right location and products. Identify a need in the mall or your local market that you can fill. It could be a product such as plus-sized jeans, or a service such as a shoe repair shop. Then, write a business plan that lays out your strategy for operating the store and how you’ll turn a profit. Choose the best available location that meets your space and budget requirements. If you can’t finance your own start-up costs, contact a local bank or apply for a small business loan. You’ll also need to purchase inventory from wholesalers or producers of the items you plan to sell. You can also visit trade shows for your industry to find new, quality products that you can sell. For tips about how to design the inside of your business in a shopping mall, keep reading! Did this summary help you? Yes No

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Shopping Mall Building Project Proposal Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Looking to build the shopping mall of your dreams? We've got you covered! ClickUp's Shopping Mall Building Project Proposal Template is the ultimate tool to streamline and simplify your project planning process.

With this template, you can:

• Create a comprehensive project proposal that covers all the crucial details, from concept to execution.
• Collaborate seamlessly with your team, contractors, and stakeholders to ensure everyone is on the same page.
• Keep track of timelines, budgets, and milestones to stay organized and deliver your project on time and within budget.

Don't let the complexity of building a shopping mall overwhelm you. With ClickUp's template, you'll have everything you need to bring your vision to life. Start building your dream mall today!

Benefits of Shopping Mall Building Project Proposal Template

The Shopping Mall Building Project Proposal Template offers a range of benefits for anyone involved in a mall construction project:

• Streamlines the proposal process, saving time and effort
• Provides a professional and polished document to present to stakeholders
• Ensures all necessary information is included, such as project scope, timeline, and budget
• Helps to clearly communicate the project vision and goals
• Increases the chances of securing funding and support for the project
• Facilitates collaboration and alignment among team members
• Enables easy customization to fit the specific needs of the project
• Simplifies project management by providing a clear roadmap for execution.

Main Elements of Shopping Mall Building Project Proposal Template

ClickUp's Shopping Mall Building Project Proposal template is the perfect tool to plan and execute your next construction project. Here are the main elements of this Whiteboard template:

• Custom Statuses: Track the progress of your project with two customizable statuses - Open and Complete - to ensure that every task is accounted for and completed on time.
• Custom Fields: Utilize custom fields to capture essential information about your project, such as budget, timeline, materials needed, and any other specific details that are crucial for successful execution.
• Custom Views: Access two different views to manage your project effectively. The Project Proposal view allows you to outline your project's scope, objectives, and deliverables, while the Getting Started Guide view provides a step-by-step plan to kickstart your project.
• Collaboration Tools: Collaborate seamlessly with your team by utilizing ClickUp's built-in features such as task comments, file attachments, and real-time collaboration to ensure everyone is on the same page throughout the project lifecycle.

How to Use Project Proposal for Building A Shopping Mall

If you're planning to propose a shopping mall building project, using a well-structured template can help you present your ideas effectively. Here are five steps to help you make the most of the Shopping Mall Building Project Proposal Template in ClickUp:

1. Develop a clear project overview

Start by providing an overview of the shopping mall building project. Explain the purpose, location, and target market for the mall. Include details about the size and design of the building, as well as any unique features or amenities that will set it apart from competitors.

Use the Docs feature in ClickUp to create a detailed project overview that highlights the key aspects of the proposal.

2. Outline the project timeline and milestones

Next, lay out a timeline for the project, including important milestones and deadlines. Break the project down into phases, such as site selection, design and planning, construction, and grand opening. Clearly define the duration and expected completion date for each phase.

Utilize the Gantt chart feature in ClickUp to create a visual representation of the project timeline and milestones.

3. Detail the financial aspects

Provide a comprehensive financial analysis of the shopping mall building project. Include estimated costs for land acquisition, construction, permits, marketing, and ongoing maintenance. Present a projected income statement, including anticipated revenue from rental income and other sources, as well as operating expenses.

Use the Table view in ClickUp to create a financial spreadsheet that outlines the costs, revenue projections, and potential return on investment.

4. Highlight the marketing and leasing strategy

Explain your marketing and leasing strategy to attract tenants and ensure the success of the shopping mall. Describe how you plan to promote the mall to potential retailers and anchor tenants. Outline any incentives or benefits you will offer to attract businesses to lease space in the mall.

Utilize the Board view in ClickUp to create a visual representation of the marketing and leasing strategy, including lists of potential tenants and their contact information.

5. Include supporting documents and visuals

Enhance your proposal by including supporting documents and visuals that provide additional context and support your ideas. This could include architectural renderings, site plans, market research data, and testimonials from potential tenants or industry experts.

Use the Docs and Whiteboards features in ClickUp to add supporting documents and visuals to your proposal, making it more engaging and persuasive.

By following these steps and using the Shopping Mall Building Project Proposal Template in ClickUp, you can create a compelling proposal that effectively communicates your vision for the project and increases your chances of success.

Get Started with ClickUp's Shopping Mall Building Project Proposal Template

Real estate developers can use this Shopping Mall Building Project Proposal Template to streamline the process of proposing and managing a shopping mall construction project.

First, hit “Get Free Solution” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to bring your shopping mall to life:

• Use the Project Proposal View to create a detailed proposal that outlines the scope, budget, and timeline of the project
• The Getting Started Guide View will provide you with a step-by-step plan on how to begin the construction process
• Organize tasks into two different statuses: Open and Complete, to keep track of progress
• Update statuses as you complete tasks to ensure everyone is up-to-date on the project's progress
• Assign team members to specific tasks and set due dates to maintain accountability
• Utilize Checklists to break down larger tasks into smaller, actionable steps
• Attach relevant documents and resources to each task for easy access
• Communicate with team members, stakeholders, and contractors through comments and @mentions
• Monitor and analyze tasks to ensure the project stays on schedule and within budget.

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Guide to Designing a Mall

Home Blog Retail Guide to Designing a Mall

Malls today  need to reinvent themselves  and meet the increasing demand for authentic and memorable experiences. With e-commerce, customers can find the majority of their favorite stores online and order products with a click of a button from the comfort of their own homes. This leaves many business owners concerned about  the future of retail .

That doesn’t mean malls are a thing of the past. Shopping malls are a timeless destination that offers guests many different options in one convenient place — one survey found that just as much as Gen Z likes to shop online,  97% of them  shop at brick-and-mortar retailers, too. The trouble isn’t just competing with online stores but how to design a mall for longevity and keep customers interested over time.

Emphasize these benefits to the fullest and remind your customers why they enjoy coming to shopping malls.

Read the full article or jump to a specific section to learn more about how to create shopping center designs:

How E-Commerce Has Changed Shopping Malls

• Factors to Keep In Mind When Designing a Mall

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With the rapid rise of online shopping in recent years, many people feel the convenience of shopping online beats going to the mall. The number of e-commerce users  has grown exponentially  since 2020, and malls across the United States have felt the effects.

Though American malls are facing challenges, they still have many advantages over online stores. Shopping malls  offer a unique customer experience  for the whole family in addition to dozens of shopping options in one place.

While online stores require shipping fees and wait times to receive items, customers can enter dozens of stores in the mall, walk out with everything they need and even stop for a meal while they’re at it. Families can enjoy arcade and gaming areas, playgrounds, movie theaters and bookstores in addition to shopping.

Customers who need last-minute items for a vacation or a quick gift idea can also benefit from having so many options in one place. With this in mind, it’s important to remember the advantages that shopping malls have in the face of e-commerce convenience.

Factors to Keep in Mind When Designing a Mall

To stay competitive with the e-commerce industry, you must know how to make your mall successful and inviting for guests with the essential elements. While the retail stores themselves need to be diverse to attract all kinds of customers, you also need to consider how the design of your mall will keep them coming back for more than just shopping. Here are some tips for designing a mall and making it the perfect spot for families to enjoy.

Choose the Right Location

Even if you design your mall perfectly, it will have difficulty succeeding if you choose the wrong location or site to build it on. Try to look for up-and-coming cities or towns with established schools and families. Malls are a popular place for young kids to spend their weekends or time after school, so picking a location near a middle or high school is another great choice.

One of the most important things to look for when choosing a location is if there are other popular stores around that bring in lots of shoppers. This element can indicate whether your mall will be successful and attract many eager customers. You also want to consider the future success forecast. If you choose a location that works today, it may not have the same sustainability in a few years. Look at factors like whether residents are moving away or if nearby areas are expanding.

Here are some questions to ask when choosing a location for your mall:

• Is there enough space for parking, vendors and delivery trucks?
• Does the area already have established success from other stores?
• Is there a fitting demographic in your location for potential customers?
• Are there competing businesses near the location?
• Does the location provide enough visibility?
• What are the local business laws and zoning restrictions?

Prioritize Technology for Convenience

Modern technology is key whether you’re designing and building a shopping mall from the ground up or acquiring an existing building. High-tech solutions help you maintain smooth operations and keep consumers engaged and tenants happy.

Incorporate technology that makes navigating your mall convenient for consumers and creates opportunities for your tenants. Here are a few strategies to consider:

• Indoor digital maps
• Personalized augmented reality brand experiences
• Digital concierge
• Interactive window and mirror displays
• Digital signage
• Robot guides

Adapting to technological advancements is crucial in this digital age. It helps you create immersive experiences that keep consumers coming back.

Choose the Best Layout

Once you decide on a location, the next step is determining the layout. Mall layout considerations include:

• Building orientation
• Circulation, or the way shoppers move through the mall
• Water supply and drainage
• Landscaping

You must consider designing an efficient layout that makes it easy for customers to walk around different levels and stores throughout the mall without getting lost. To help with navigation, you should include proper signage throughout the mall and ensure there are clear sightlines that direct guests to every area.

There are many different types of layouts you can choose from for the design of your mall, depending on what you want to take up the most attention. Typically, you might put areas like the food court in the middle or at one end of the mall to direct the flow of traffic to those zones.

These main areas that take up the most space in your mall are the “anchor locations.” Some malls even create a “racetrack” format that allows customers to walk around the mall in a loop and end up at their starting point — letting them view all stores and restaurants before making their exit.

The main goal when designing the layout of your mall is to create flowing movement throughout all areas and ensure you maximize the space in each section. Here are some other terms to remember when designing your mall:

1. Barriers

Try to avoid any unnecessary large physical or visual barriers throughout the mall that close people off to certain areas or block their view of other stores and attractions. For example, if a guest cannot find a restaurant after walking around for a few minutes, they may become frustrated with the layout.

2. Loading Bays

Your mall will need a large loading bay to load and unload product shipments, equipment and food on and off trucks. You might even need more than one, depending on your mall’s layout. Ensure this area is not too close to customer parking so it won’t pose an obstacle to guests trying to enter or exit the mall.

3. Accessibility

There should be free movement on every level and between different points so people of all abilities can easily access any area they desire without needing assistance. There should always be elevators, escalators, ramps and other elements that help connect separate areas of the mall for people who may have physical limitations or use mobility devices.

4. Maintenance

If you plan to design a mall with complex structures and architecture, make sure you can maintain the cleanliness of these areas, including the primary spaces like the food court and playgrounds. Some malls also have elements like koi ponds and fish tanks, so you will need to hire a team of people to help feed, maintain and clean these tanks.

5. Restrooms

Shopping malls can hold thousands of people at once, which is why it’s so important to include plenty of restrooms in your design. You should also create clear signage for restrooms wherever you can so customers can easily find their way without disrupting their experience.

Make Sure There’s Enough Parking

Parking is a very important aspect of a shopping mall because there must be enough room for customers to park without having to walk too far to get to the entrance. If there isn’t enough room for a wide parking lot, consider implementing a parking garage that has direct access or provides a short walkway to the mall. This element will help guide your customers to the primary areas without frustration, and help to improve the overall shopping mall layout.

You should align your sidewalks and other areas of pedestrian movement in the same direction as the vehicles. Aside from parking garages or basement parking, you can also offer valet services at your mall so customers can quickly pull up to the front without having to look for a parking spot — particularly on busy days like weekends and holidays.

Create a Striking Entrance

When designing your mall, it’s important to focus on entryways. The entrance to your mall is the first thing your guests or customers will see as they drive by and before they decide to go in. This element is the perfect opportunity to make a great first impression, invite visitors and make them feel welcome.

Adding features like water fountains, skylights, brightly colored murals, plants and flowers can make entryways look attractive to customers and entice them to see the inside and look at the different attractions. It’s also important to ensure your mall entrance is well-lit so your guests can easily find their way to the front after dark.

Depending on your mall’s layout, you might have multiple entrances. Whether you place entryways at opposite ends of the space by anchor stores or along the sides of the mall, give them all equal attention.

Shop Themed Indoor Playgrounds

Find Ways to Incorporate the Whole Family

Making your mall a family-friendly space is a great way to encourage more visitors and attract loyal customers. Families who can spend any day of the week at your mall and always have something to do on their weekends will likely return for an excellent shopping and eating experience.

Providing amenities and attractions that appeal to different ages and audiences will help your mall’s longevity. If your mall only offers retail stores and one or two restaurant options, it’s likely going to lose its popularity quickly among families with members that have different interests and tastes.

Expanding your options and incorporating different games, rides, playgrounds and other fun activities gives customers more reasons to keep coming back. Keep in mind that — in the present day — your shopping mall will be competing with e-commerce businesses and other shopping centers near your area, so it’s important to find ways to stand out above the rest.

Here are some popular family-friendly options to add during your design process:

1. Amusement Parks

Indoor amusement parks  are a great way to attract families to your mall. On hot summer days, parents can take their kids to your mall’s amusement rides without facing the blistering sun and have plenty of entertainment, food and restaurant options to choose from.

Kids can enjoy rides, trampolines, bumper cars, arcade games, obstacle courses and many other fun activities. Some malls that have implemented this idea include the Mall of America, Aventura Mall, Mall of the Emirates and West Edmonton Mall.

2. Aquariums

Zoos and safari theme parks  are popular sites for families and large crowds. Incorporate this into your shopping mall design by strategically placing aquariums of various sizes on each level, providing customers with a glimpse of diverse wildlife around every corner.

You could also incorporate a dedicated area for your aquarium in one section of your mall to solidify it as a dedicated attraction. Provide educational signage about the diverse animals and plant life along with a visually attractive layout — which can entice families to bring their kids for an immersive learning experience.

3. Movie Theaters

Technology and digitalization have brought the same convenience to movie-watchers they have to shoppers. Customers can now stream or rent movies from the comfort of their own homes, which has contributed to the  declining numbers of movie ticket sales .

With the help of other amenities in the mall, you can implement a movie theater that serves as the perfect after-school or post-work activity. Your customers can enjoy a feature film and then take a short walk over to explore one of the many restaurants you have to offer.

4. Playgrounds

Adding a playground to your mall is one of the best ways to attract families. Playgrounds come in many different shapes and sizes, so you can fully customize them to your needs. You can disperse smaller, classic playgrounds around your mall or build a large attraction as a central location. Playgrounds are a great way for families to socialize and meet new people with kids of similar ages.

Because every playground is unique, you can choose from a smaller,  themed playground for an indoor area  or create a  high ropes adventure course  in your outdoor courtyard. Kids will love the opportunity to climb, slide, navigate a ropes course and enjoy other activities within the playground.

You can also choose between an  all-ages playground  or designated areas for different age groups. For example,  toddlers  and school-aged kids should each have appropriate equipment for their height and physical capabilities to ensure they get the most out of their playtime.

There are many different playground themes and equipment options to choose from, including:

• Gamified experiences
• Play structures and towers
• Sculpted foam structures
• Interactive play experiences

When you work with an experienced, contained playground equipment company, you can rely on them to help you design and implement a playground that delights your guests and keeps them coming back to play. Playgrounds will also  enhance your business and increase foot traffic  to various areas of your mall, leading to a higher return on investment (ROI).

Explore Large Attractions

Include All Types of Restaurants

Another element that can set your mall apart from other shopping centers is including a wide variety of diverse restaurants. Incorporating a healthy mix of casual and extravagant restaurants in one place will make your mall a central location that offers endless options for all kinds of customers. Whether guests want to grab a quick bite to eat in a sports bar or have a fine dining experience, they can find whatever they’re in the mood for by visiting your mall.

To help with the sustainability of your mall, it’s wise to choose restaurants that already have an established customer base. Popular chain restaurants would work well because many guests will recognize the restaurants on your signage.

It’s also a good idea to include some newer restaurants that let your customers try something different and offer a unique experience compared to other shopping centers in your area.

Make Sure the Spaces Connect

With such a large space, it takes planning to get your stores, restaurants, playgrounds and other amenities to connect and feel cohesive for your guests.

Just as with your layout, you should consider the flow of your mall’s indoor and outdoor spaces and evenly distribute signage, circulation pathways or even shuttles for guests to go from one side of the mall to the other without too much walking. Malls can contain hundreds of stores, so it’s easy to understand how a customer might feel frustrated if they park at one end of the building and need to visit a specific store on the other end . 

Think about the demographics that shop in different areas, too. A playground will work well by kids clothing stores or toy stores, while an arcade suits stores geared toward adults and teenagers.

The placement of every store and restaurant is important to maximize your space and ensure popular stores are easily visible to customers. Wide walkways are also essential — your guests shouldn’t be bumping into each other as they walk in different directions and should have easy, flowing movement from one store to the next on every level.

Create Sustainable Spaces

Many shopping mall designs incorporate environmentally friendly aspects into their infrastructure, like beautiful rooftop parks and gardens with  outdoor playgrounds  for kids. Additionally, efforts like conserving water, using recycled building materials and implementing renewable energy can help you reduce your mall’s environmental footprint.

If sustainability is a top priority for you in the design of your shopping mall, consider Leadership in Energy and Environmental Design certification and other building performance standards to set you on the right path.

Add Greenery

You should also carefully design the landscaping in and outside of your mall. Just as the entrance of your mall is an important attraction point, the greenery that your customers see will contribute to a positive impression and draw more customers in as they drive by. Many businesses include various types of plants in their office buildings for several benefits, and you can add greenery around your mall for the same advantages in the shopping center designs:

• Improves air quality:  Many different types of indoor  plants and greenery improve air quality  by filtering carbon dioxide into oxygen. Plants also absorb dirt and pollutants and control humidity levels.
• Reduces noise pollution:  Plants help absorb and reduce noise pollution by muffling sounds of crowds, traffic, water noises, echoes and other sounds in a communal space.
• Attracts customers:  People are more inclined to visit and stay in a place with attractive landscaping and greenery. Having many bright, colorful plants around can make your mall look more inviting and welcoming. Plants can also  reduce stress  and make people feel more comfortable and at ease.
• Helps with energy efficiency:  Adding plenty of greenery, solar panels, green roofs and other vegetation can help with energy efficiency and even  reduce cooling and heating bills . Trees and shrubs also provide plenty of shade to keep guests cool in outdoor areas while minimizing your mall’s carbon footprint. Guests will then view your mall as environmentally friendly and consider coming back.

Consider Using Simple Designs

When you have a smaller shopping center to work with, keep your layout simple. Choose a floor plan that gives you prime anchor spots, smooth traffic flow and plenty of room for rows of shops, such as a basic U, L or dumbbell shape.

It’s important not to skimp on amenities just because you’re building smaller. Ensure your customers have access to a healthy mix of grocery stores, retail properties and entertainment options like live shows and  indoor play sculptures  when they enter.

A good place to start is the parking lot, where you should ensure you adhere to a five-to-ten space per 1,000 square feet parking-to-retail ratio. Try to make the most of spaces by including multi-use areas and encouraging tenants to do the same. For instance, small grocers could offer fresh deli sandwiches and a cafe on the outskirts of the store. This mixed-use space will keep mall-goers engaged and raise the store’s traffic.

Ensure Your Floor Plan Flows

When designing a shopping mall, it’s important to remember that it’s not just about buying things. Online shopping provides consumers with a basic retail experience, meaning you need to offer them something more to make visiting your mall worthwhile.

A great way to stand out is by designing a floor plan that features a balance of retail, entertainment and dining that avoids bottlenecks while effectively driving foot traffic. For instance, if you’re going to feature  small play structures , ensure they’re central and allow walkways to pass around them smoothly.

Assessing trouble spots often requires opening your doors to the public first, so you may need to find more innovative ways to evaluate what works and what doesn’t. Augmented reality navigation is a method that helps you collect data on consumer behavior, helping you adjust your mall design accordingly.

Embracing technology in areas of planning is a good way to improve the overall experience. Treat your mall as an adaptive and entertaining digital space that includes a marketplace rather than a collection of storefronts, playgrounds and corridors.

At Soft Play, we know the value of active play. Playground spaces can easily enhance your space and let kids explore their imagination while helping your businesses grow. Whether you’re looking to  add a playground to an open space in your mall , amusement park, arcade or restaurant, Soft Play can  design the perfect play environment . We can create anything from indoor or outdoor play areas to  water attractions , large attractions, classic playgrounds, interactive and immersive experiences.

We can customize our play equipment to all budgets and available spaces and provide convenient turn-key solutions. With more than 30 years of experience, we have created many playgrounds loved by kids, parents and shopping center owners alike.

Contact us  today to see how we can help you with  your shopping mall design , or  request a quote  online to get started on your next project.

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Home > Resources > 11 Steps to Get Your Business into Shopping Malls

11 Steps to Get Your Business into Shopping Malls

We have created a unique team with dedicated resources in helping business owners like yourself to have a strong advantage against the market while building a stable foundation for your business to grow upon., prefer watching a video.

We know we do – and so we have placed together a comprehensive video summary of what the steps are to get your business into malls!

#1 It All Starts with Your Idea

The most important part of any business starts with an idea. An idea that is close to your heart and something that you truly believe in. The drive for which your business is built upon will resonate with your customers when they see you running your business.

This idea can come from anywhere. It may be a hobby, a passed down tradition or even technology to change the future. There are tons of ideas out there that may be the one for you. If you want to own your own business but are struggling to come up with an idea, may we suggest taking a look at possible franchisees that are tremendously successful overseas and bringing them into the Singapore market?

Alternatively, if you are looking to build upon your existing business, why not explore SCAMPER , a design thinking exercise on your business, and find relevant business ideas that would synergize with your current business, bringing about greater market share and revenue to you!

Click here for more resources on: Great Business Concepts and Ideas to Start in a Mall .

#2 Putting it on Paper into a Business Plan

Great! Now that you have an idea for your business, we need to create a business plan or a proposal for the malls. View your proposal as the executive summary of your business. What is your big idea? Grab the attention of the malls by explaining your unique concept, miles apart from their existing tenants.

The malls would want to know:

• What it would look like besides all the other businesses;
• The different types of offering in terms of products (food) your business will have;
• What plans the business has in place stay open during the mall’s opening hours;
• How the business will be bringing in customers of their own; and,
• What technical requirements the business has in terms of power and size.

Click here for more resource on: How to Create Your Business Plan To Get Accepted into Malls .

#3 Engaging a team of Real Estate Professionals

You have done your personal preparation, perhaps reached out to business consultants you know, family and friends for their advice and insight into your business idea. But now, you are ready to engage a real estate professional to represent your interest into the perfect space.

At MallSpacesAsia, we firmly believe in the sharing of knowledge and expertise. So rest assured when working with us, you are not just working with property professionals and their close extensive network with more than 100 malls, but professionals consisting of business consultants, branding consultants, interior designers, and F&B owners.

Our Real Estate Professionals will take you through every step and serve you exclusively along your journey in finding your perfect space and beyond!

Click here for more resources on:  11 Things to Look Out for when Engaging Real Estate Professionals for your Search for Spaces in Malls .

#4 Focus in on your Target Audience

After you have your idea, a business plan and have made contact with our Pro, we will help analyze your business strategies and define your target audience together with you.

Being clear about your target audience is akin to having a goal for your business. While the idea behind your product or service offering may be the difference between a Porsche and a Kia, identifying and acquiring the right target audience is the difference between a full tank of petrol and one running on two liters.

Our Pros have been trained by our team of business consultants in identifying strengths and threats to businesses along with identifying key targets and strategies for a multitude of businesses.

Click here for more resources on:  Why Your Target Audience will Make or Break your Business in Malls

#5 Shortlisting Locations with your Professional

Now it’s time to set your sights on a location. With their extensive network of contacts and relationships with malls, our Pros have access to the latest data analytics and surveys carried out in the industry to identify and shortlist the most suitable location based upon your requirements.

The perfect location for all business does not exist.

However, the perfect location for your business does. Our Pros take into account the type of business you are running, your target audience, type of crowd you prefer, your long-term business objectives, eCommerce enabled , the strength of your branding , and more…

#6 Location Sourcing by your Professional

Having gathered all the information and shortlisted locations, your Pros will start a conversation with the relevant leasing Cluster Managers on your concept and all the unique aspects of your business.

Cluster managers are responsible for most or all malls under their group. Thus, by talking to the cluster managers, we will essentially be talking to all malls under their group at once, increasing our efficiency and effectiveness in the process.

#7 Concept Presentation

Our Pros will usually hear back from the cluster managers within the week and be asked to officially present the concept for each location directly to the mall. This is where your business plan comes into play as an important and crucial document in the process.

We understand that malls are being run as businesses, often hedge their risks as well, and concepts that are accepted by malls are usually those that do not pose a financial risk to the malls as well. Malls have their own business and financial consultants who will review your numbers, this way, the mall is able to validate your business viability in the long run.

The objective of the concept presentation is to gather feedback, secure a buy-in and acceptance around your concept and business plan from the mall. Remember, malls are a business themselves and succeed by having successful businesses in their malls.

#8 Unit Proposal by the Mall

Good news! The mall and their team have thoroughly enjoyed what they heard and saw and have accepted your concept. Moving forward, the leasing manager from the mall will make contact with you and your Pro, proposing a location for your consideration.

Keep in mind that up till this point, you have incurred zero fees from! Because at MallSpacesAsia, we believe bringing you the best service and allow you to explore all your options without worrying about any charges or billable hours. Moving forward, your Pro will inform you with more details of the proposed location.

#9 Viewing & Evaluation

Your Pro will, after being proposed a location for your consideration, arrange an on-site viewing of the location with the leasing manager. The objective of this viewing is to address any concerns about the location and analyze the space from your business perspective.

It is in our best interest to have your best interest at heart. As such, your Pro will advise you of both the strengths and potential pitfalls of each location you view. Do not hesitate to ask any questions or voice out your concerns to your Pro.

Click here for more resources on:  10 Things to Look Out for when Viewing Spaces in Malls

#10 Offer to Lease: Presenting Your Offer

You have made it to your perfect space! You are happy and excited to start your business in your new unit. Now it’s time to have your Pro prepare an official Offer to Lease on your behalf to be sent to the mall.

If you are unsure about usual mall rental charges, take a look at our calculator and the article that goes along with it. If you are still unsure after reading the article and trying out the calculator, be sure to ask your Pro for assistance.

#11 Tenancy Agreement

Welcome to the last step of getting your business into a mall, the Tenancy Agreement. Once your Offer to Lease is accepted by the mall, you and your Pro will receive an official reply. The mall will then proceed to prepare the Tenancy Agreement and the payments process shall begin.

Only at this point in time will payment collected by your Pro for their service rendered to you. For more information on our fee policy, please visit our zero fee policy page .

#12 Bonus: Your Journey Begins

Congratulations for making it through the journey of getting your business into a mall! Now you enter the next phase of your business, setting everything up, advertising and reaching out to potential customers (that you have targeted previously). Reaching out to interior designers, logistical fulfillment companies, branding firms, social media marketing consultancies and more!

Depending on your product offering, your requirements will vary greatly from your neighboring tenants. Remember, starting and growing a successful business isn’t all luck. Sure, luck will help. But being prepared and ready for when your luck arrives will make the difference between thinking how to keep your business afloat and thinking where to open your eighth store!

Talking to a Professional who knows the Process

Have an idea? Looking to expand? Found a mall you want to enter? Let us know and we’ll be pleased to help you! We have a team of real estate relationship managers, business consultants, interior design consultants, marketing consultants, fulfillment consultants, and much more to assist you in any queries you may have.

Getting into a mall requires a process and it starts with your concept. Got a great idea for the mall? Talk to us and we can make it happen for you by recommending suitable malls and spaces for your needs. We know the in and out of Malls and will be with you every step of the way!

At the end of the day, we have searched for and hand-picked the best team of professionals in the mall industry to provide the assistance you require on one or more component in your journey.

Don’t hesitate to reach out to us and we will be in contact with you within the day.

Share this post with your team!

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10 Things to Look Out for when Viewing Spaces in Malls

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Build a Shopping Mall

How much does it cost to develop a shopping mall?

Get free estimates from General Contractors near you

Updated: October 13, 2022

Reviewed by Adam Graham remodeling expert. Written by Fixr.com .

To provide you with the most accurate and up-to-date cost figures, we gather information from a variety of pricing databases, licensed contractors, and industry experts.

Shopping centers and malls bring a lot of jobs, entertainment, and resources to an area. Malls range from large indoor two-story malls and small three-store strip malls to incredibly large supercenters with amusement park rides inside. The store types and sizes and whether they include anchor stores also varies. This results in a wide range of associated costs.

The national cost average is $25M to $180M , with most people paying around $75M for a 250,000 sq.ft. two-story regional mall containing 3 anchor stores. At the lowest cost, you can build a 10,000 sq.ft. neighborhood mall with one anchor for $2.5M . At the high end, a deluxe supercenter mall with 500,000 sq.ft., 3 levels, a movie theater, restaurants, and 4 anchor stores costs $225M .

Shopping Mall Costs

2022 Notice: The Effect of the Pandemic on the Construction Industry

The construction industry was seriously impacted by the pandemic in 2020 like many other industries and professions. This impact is still felt in 2022, with rising construction costs and fluctuating material prices. Malls, which use large amounts of concrete, glass, and plastics that are experiencing supply issues and volatile pricing , are significantly impacted in the coming year.

This is coupled with labor shortages, making construction times longer than normal. While indoor shopping has seen a decline over the last two years, the mall industry is expected to change. Open-air malls are becoming increasingly popular, as is an uptick in indoor shopping. This can lead to longer wait times as more malls and open-air shopping centers are being constructed or older malls are renovated.

If you are planning on building a new mall in 2022, you may want to sign a contract sooner than later. This helps lock in prices before they can rise again and get your start date set before delays can occur.

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Shopping mall cost by type.

Shopping malls come in many shapes, sizes, layouts, and configurations. Generally, they fall loosely into a range of categories. There can be overlap, flexibility, and size ranges within these categories. Some strip malls and neighborhood shopping centers can be hundreds of thousands of square feet, while some indoor enclosed malls may be much smaller. They can be fully enclosed or open-air, have anchor stores or not, and have varying numbers of floors, anchors, and features. These variations can help account for differences in cost, either through size or the amount of construction and finishing necessary, and by the different features it may have. The more features and anchor stores, the larger the parking lot and the more luxurious the area becomes. This also increases the total project costs. Below are the average costs to build each type, based on the most common sizes for each type and the average cost to build:

Build a Strip Mall

The cost to build a strip mall falls between $1.75M and $3.5M . They are simple outdoor malls in either a straight line of stores or a U-shape with an average size that falls between 7,000 and 20,000 sq.ft. They may or may not have an anchor or a large store designed to attract customers who will then move on to the other stores in the strip. They can be as small as 3 stores, or as large as 12 or more stores. They cost $200 to $300 a square foot to build, depending on whether they have anchors and what type.

Neighborhood Shopping Center

The cost of a neighborhood shopping center averages between $2.5M and $10M , depending on the size and location. A neighborhood center is designed to serve the needs of a specific area. It usually contains a supermarket or grocery store as an anchor, with several smaller stores, restaurants, or other mixed-use buildings. Each store is entered from the outside, like in a strip mall. They cost $250 to $300 a square foot to build, depending on what anchors the shopping center has. Some newer neighborhood shopping centers are grouping their stores in a circle to create an open-air style mall.

The cost of theme malls is between $2.5M and $20M , depending on the type, style, and size. They are usually made of shops or services that all center on a single theme, such as antique malls where all the shops sell vintage or antique goods. They can be stand-alone buildings or made as a strip mall. This is another style that is also being converted to open-air, which is gaining popularity. They cost between $250 and $300 a square foot.

Community Shopping Center

Community shopping centers cost between $5M and $25M to build. A community shopping center is a larger version of a neighborhood shopping center or a large strip mall. They usually have at least one anchor, two anchors being common, such as a supermarket and a gym or movie theater. They can be arranged in a straight line or a U, depending on placement. They cost between $250 and $300 a square foot to build, depending on the location and what features the shopping center has.

Outlet Mall

The cost to build outlet or factory outlet malls is $6M to $30M , depending on the location, size, and layout. They are a group of stores selling brands at a discount. They are usually located far from populated areas , where real estate and renting is cheaper. They can be arranged like a traditional mall, an open-air mall without a roof overhead, or like a large strip mall. They cost between $250 and $300 a square foot to build, depending on the layout and if they have an anchor store.

Power Center

The cost of a power center averages $10M to $35M , depending on the size and types of anchors in the design. A power center is a type of strip mall made up of mostly large anchor-style stores. These include grocery stores, furniture outlets, discount clothing stores, fitness centers, and other large establishments. There may be a few smaller retailers mixed in. While these are generally considered a subtype of strip malls, they are much larger, use more space, and require considerably more parking. They cost $250 to $300 a square foot to build, depending on the anchor stores.

Lifestyle Shopping Center

The cost to build a lifestyle shopping center ranges from $10M to $50M , depending on the type, layout and location. Lifestyle shopping centers are a relatively new type of mall. They may include luxury apartments or condos as part of the structure and high-end retail, restaurants, entertainment, and outdoor dining. The shopping is usually indoors like a typical mall, and they can be of any size. The living areas may be located above the shopping and dining areas or to one side with a private entrance to the mall area. They have an average cost to build of $350 to $400 a square foot.

Regional Mall

The cost of a regional mall is $35M to $150M , depending on the size, location, and type and number of anchor stores. They are the shopping center most often categorized as a “mall.” This is an indoor shopping environment with a minimum of 2 to 3 large anchors and at least one restaurant. They are often two stories, although some are one story, with a more sprawling layout. They often include a mixture of mid-range and high-end retailers and cost $300 to $400 a square foot to build. Newer regional malls use the same general layout but with an open-air environment rather than a full roof.

Super Regional Mall

Super regional malls cost between $100M and $250M to build, depending on the size, location, layout, and anchors. They are exceptionally large malls that can be considered a destination. They have several anchors and restaurants, sometimes attached housing, and multiple types of entertainment. They are twice the size of regional malls and may be even larger. They cost $400 to $500 a square foot to build and often include luxury stores and features, including the use of luxury building materials.

Shopping Mall Space Requirements

The exact space requirements for your shopping mall vary tremendously based on the mall’s size, whether you have a cinema or restaurant, the number and size of these establishments, and the type. You also must consider how much parking you need in addition to the area for the building. For example, restaurants and cinemas require roughly 2 to 3 times the amount of parking that the rest of the mall needs. So, a strip mall without these anchors uses less space than a strip mall that includes them, even if the rest of the mall is equal in size.

You need approximately one acre of parking for every 15,000 sq.ft. of retail space. This varies, and parking garages cut down on the amount of space. Adding a parking garage or underground parking structure increases your project costs. For this reason, many malls include parking garages and outdoor parking to maximize space without making costs too high. Some cities and towns may also have stipulations or ordinances you must follow, so it is always best to check with the city planning board about the type and size you want to construct.

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Mall construction cost breakdown.

No matter which type of mall you build, there are many variables. From the professionals and materials to the types of signage and accessories the mall needs, each project is unique.

It can be helpful to break the building into different categories. For example, the actual building is one part, but there are also innumerable finishing costs, soft costs, and contractor fees that make up the total figures. While every project is unique, it is possible to break down some of the more common costs to see where your money is going during the project.

For an average mall project, the general breakdown of the construction falls into these categories. Architect costs and builder fees can be in addition to your total cost.

In addition to your total cost breakdown, you will likely have numerous professionals involved. Many of these professionals work under your general contractor, but you can hire them yourself separately, potentially saving costs. Every project can be different, affecting your final rates. Below is the cost breakdown you can expect for the labor.

Building the mall is only one part of the costs. The finishing or outfitting costs also have a significant impact on your total costs. These things are some of the most variable, including the displays, fixtures, and signs that are selected for the stores and anchors inside the mall. Other things like roofing and HVAC also vary depending on the type and location. The following is a general breakdown of some costs you may encounter during the outfitting phase.

Average Number of Stores in a Mall

The number of stores your mall has directly relates to the type. For example, strip malls can have from 3 to 12 stores, while a power strip mall can have 6 to 24 much larger stores. A regional mall can have anywhere from 20 to 80 stores in the enclosed space on average. A super regional mall has a minimum of 75 stores and usually has more. It is not uncommon to see super regional malls with more than 100 stores. Luxury high-end malls usually have between 25 and 50 stores, while lifestyle malls easily have 25 or more stores with multiple restaurants.

The number of stores your mall has is directly influenced by the space size and store types. The more anchors you have, the less space you can dedicate to smaller stores.

​Outlet vs Mall

The words outlet and mall have different meanings and connotations to many people. The word “mall” has many variations, from small strip malls to large luxury apartments connected to indoor shopping and dining areas. A mall can also have various outlets, in which case it becomes a factory outlet mall or an outlet mall.

Outlets are discount stores for specific brands. They become an outlet mall when grouped in a single building. They may be grouped facing inward like a traditional mall without a fully enclosed ceiling, or they may be grouped more like a strip mall.

On the other hand, you can also have stand-alone outlet stores. This can be a store located in a strip-mall, standard mall, or a building. Because many people who shop at outlets like the discounts, it is common to find several outlets in an outlet mall. This lets shoppers move from one outlet to another without driving.

The biggest difference between an outlet and a standard mall is the store types you find inside. In a standard mall, you can find a mix of stores and restaurants of all kinds, including the occasional outlet. In an outlet, however, you find only outlet or discount stores from various brands.

Mall Rent Rates

Many investors build malls for the income they generate. Malls rent out storefront spaces to different retailers, bringing in money for the building owner. The benefit for the different stores is the foot traffic that a mall can bring, while the benefit for the store owner is the revenue.

The cost to rent a space in a mall varies depending on your location, whether you are renting a normal storefront or an anchor, and the type. Rates are usually charged by the square foot and range from $5 a square foot in a strip mall to $40 a square foot in a high-end mall.

The more foot traffic a mall sees, the higher the rental rates generally are. You may see different rates within one mall, depending on the location and how many people pass during an average day.

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Enhancement and improvement costs, parking garage.

Given the amount of parking that a mall needs, a parking garage can be a good addition. Parking garages fit more cars, which fits your mall or shopping center into a smaller footprint. This can be beneficial if you are short on space. The average cost to build a parking garage is $7.5M to $12M .

There are times when you have an existing building on the land you plan to build on. This may be an older mall, a group of stores, or office buildings. If this is the case, you need to add demolition costs to your project. Demolition costs $4 to $8 a square foot for commercial spaces, depending on the building location and materials you are demoing.

Additional Considerations and Costs

• Financing . It is very common for people building malls and other large commercial buildings to seek financing. There are types of financial assistance just for shopping centers and malls that assist in the build, from bank loans to venture capitalists.
• Permits . Large projects like shopping malls need several permits for construction. Your architect or contractor can assist with this, and they include permit costs in their estimates. Permit plans must be submitted before construction can begin.
• Demographics . Before building a mall, determine who your target demographic is to give you an idea of your potential new customers. This includes the age of your shoppers, their budgets, and lifestyles. This determines the project scale and layout and the best mall type to build.
• Design and layout . The architectural design and layout of your mall play a big role in performance. Consider the placement of your stores and anchors, planning and flow of the foot traffic, space utilization, and sustainability of your materials and design.
• Amenities . With the advent of the digital age, most malls today need to offer more than shopping to stay relevant. Entertainment, restaurants, and services are necessary parts of today’s mall to remain profitable. Consider your demographics to know what best to include.
• Mixed use . Adding temporary, mixed-use spaces to your mall helps you remain flexible to changing trends, without needing to renovate areas constantly. Many malls leave spaces in the center of the mall for this purpose.
• How long does it take to build a shopping mall?

This depends on the mall type, size, and construction methods used. Expect several months to more than a year for most large-size projects. There are currently many delays in labor and supply shortages that can make the timeline longer.

• What are the four most common types of shopping centers?

Strip malls, neighborhood shopping centers, power centers, and regional malls are the most common. However, this changes based on the area, with outlets being more common in some places.

• What is the difference between a mall and a shopping complex?

A mall can be a type of shopping complex. Shopping complexes are enclosed spaces containing numerous stores and amenities. Malls can be shopping complexes or strip malls and groups of stores with separate entrances from the outside.

• How much does it cost to build a strip mall?

The average cost to build a strip mall is around $1.75M to $3.5M , depending on the space size and complexity.

• How do malls make money?

Malls charge rental space for establishments. They bring in people with large “anchor” stores or offer entertainment or novelty stores, hoping people will circulate to the other stores. Retailers pay for the location, hoping to get foot traffic in their establishment.

• APA. “Site Design, Parking and Zoning for Shopping Centers." https://www.planning.org/pas/reports/report59.htm
• Chron. “Outlet Vs. Retail." https://smallbusiness.chron.com/outlet-vs-retail-24386.html
• Chron. “The Purpose in Preparing a Shopping Mall's Sales Marketing Plan." https://smallbusiness.chron.com/purpose-preparing-shopping-malls-sales-marketing-plan-72425.html
• Craftsman Book Company. National Construction Estimator , 69th ed., Ed. by Richard Pray (Carlsbad, CA, 2021).
• FIXR Cost Guides and Cost Database.
• Fodor’s Travel. “The 10 Best Malls in the World." https://www.fodors.com/news/photos/the-10-best-malls-in-the-world
• ICSC. “U.S. Shopping-Center Classification and Characteristics." https://www.icsc.com/uploads/research/general/US_CENTER_CLASSIFICATION.pdf
• Korte. “​​A brief guide to the future of mall construction and renovation." https://www.korteco.com/construction-industry-articles/brief-guide-future-mall-construction-and-renovation/
• Harvard Business School. “Where Should We Build a Mall? The Formation of Market Structure and Its Effect on Sales." https://hbswk.hbs.edu/item/where-should-we-build-a-mall-the-formation-of-market-structure-and-its-effect-on-sales
• McKinsey. “The future of the shopping mall." https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-future-of-the-shopping-mall#
• Peerspace. “How Much Does It Cost to Rent a Store in the Mall?" https://www.peerspace.com/resources/rent-store-mall
• Statista. “Average construction costs of retail shopping facilities in the United States in 2019, by select city." https://www.statista.com/statistics/830375/construction-costs-of-retail-shopping-facilities-us-city/

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How To Start A Shopping Mall Business in India – Complete Guide

• by Next What Business Research Team
• Business Plans , Retail
• August 31, 2024

The shopping mall is an emerging and lucrative business in India. However, the business demands the right strategic planning with financial and marketing planning. Here in this article, we intend to explore the steps to follow to start a shopping mall business in India.

Nowadays, the shopping mall is not a business only for metropolitan cities. This big retail business venture is fast becoming successful in Tier 2, and Tier 3 cities, and small towns as well. If you have a good location with sufficient capital to invest, you can think of opening a shopping mall. However, there are a lot of other factors that you must consider before starting this business.

Table of Contents

Is the Shopping Mall Business Profitable in India?

Shopping malls are gaining tremendous popularity these days. And definitely, there are several reasons behind it. According to retail industry experts, the demand for the mall will increase in the coming years. And we can expect significant growth in the shopping mall business throughout the country.

Generally, shopping malls offer a comfortable and luxurious shopping experience. Additionally, a mall offers a lot of activities and means of entertainment. Apart from the shopping, it offers movies, a games plaza, a banquet hall, a food court, and enormous events throughout the year. As a result, shopping malls are becoming popular hangout destinations for city residents.

10 Steps to Start a Shopping Mall Business in India

1. Market Research and Feasibility Study

Conduct thorough market research to identify potential locations, target demographics, and competition. Analyze consumer preferences, purchasing behaviour, and demand for retail spaces in the selected area. Assess the feasibility of the project by evaluating factors such as population density, economic growth prospects, infrastructure development, and regulatory environment.

2. Business Plan Development

Develop a detailed business plan outlining the objectives, target market, value proposition, revenue model, operational strategy, and financial projections for the shopping mall. Define the mall’s concept, theme, and tenant mix based on market research insights and consumer preferences. Determine the size and layout of the mall, as well as the amenities and facilities to be provided.

3. Secure Funding

Estimate the initial investment required to acquire land, construct the mall, and cover pre-operational expenses such as licensing, permits, and marketing. Explore financing options such as bank loans , equity investment, or partnerships with investors or developers. Prepare a comprehensive financial model highlighting projected revenues, expenses, and return on investment (ROI) to attract potential investors.

4. Site Selection and Acquisition

Identify suitable sites for the shopping mall based on location, accessibility, visibility, and proximity to residential areas, commercial hubs, transportation hubs, and major thoroughfares. Negotiate with landowners or developers to acquire the land or enter into lease agreements for long-term development.

5. Obtain Necessary Approvals and Permits

Obtain the required approvals, permits, and licenses from local authorities, municipal corporations, urban development authorities, and regulatory bodies for land acquisition, construction, environmental clearances, fire safety, building codes, and zoning regulations. Ensure compliance with applicable laws and regulations governing real estate development and commercial operations.

Read :  How to Register a Company in India

6. Design and Construction

Hire experienced architects, engineers, and construction contractors to design and build the shopping mall according to the approved plans and specifications. Focus on creating a visually appealing, functional, and efficient layout that maximizes retail space, enhances foot traffic, and provides amenities such as parking, landscaping, security, and utilities.

7. Tenant Acquisition and Leasing

Attract reputable retail brands, anchor tenants, speciality stores, entertainment venues, restaurants, and service providers to lease space in the shopping mall. Develop attractive leasing packages, negotiate lease terms, and sign agreements with tenants based on rental rates, lease duration, tenant improvements, and revenue-sharing arrangements.

8. Mall Management and Operations

Establish effective mall management systems and procedures to oversee day-to-day operations, maintenance, security, cleaning, tenant relations, marketing, and customer service. Hire qualified staff, security personnel, maintenance crews, and service providers to ensure smooth functioning and a positive shopping experience for visitors.

9. Marketing and Promotion

Implement a comprehensive marketing and promotional strategy to create awareness, generate footfall, and drive sales at the shopping mall. Utilize a mix of traditional advertising, digital marketing, social media engagement, events, promotions, loyalty programs, and partnerships to attract shoppers, enhance brand visibility, and foster customer loyalty.

10. Monitor Performance and Adaptation

Regularly monitor key performance indicators (KPIs) such as foot traffic, occupancy rates, sales per square foot, tenant turnover, customer feedback, and financial metrics to assess the mall’s performance and identify areas for improvement. Continuously innovate, adapt, and optimize operations to meet evolving market trends and consumer preferences.

Cost of Starting A Shopping Mall In India

There are various types of costs when you are building a mall or shopping center. The entire process starts with market research and ends with marketing and maintenance. The start-up investment will also depend on the size and location of the shopping mall. Here we put some of the basic input costs to open a shopping mall.

• First of all, you must do some market surveys or market research . It helps in making an informed decision. Therefore, it makes the project profitable and eliminates the possibility of failure.
• Finding the location and acquiring the land. You must be prepared to invest a considerable amount of investment. The right location is extremely critical for the success of a shopping mall business.
• After that, you will need to create an architectural drawing and design including the estimate. And definitely, this costs a lump sum amount. In the designing part, there are several design formats. And you have to create those formats for permission from the authority. It includes the site map, elevation, structural design, electrical design, overview, etc.
• After getting the plan, the next part is sanctioning the project from the corporation or Municipal authority. And here, you will need to pay the fees.
• Next is the construction cost. It includes material costs, labour charges, and consulting costs.
• Additionally, you must prepare the interior of the mall. It includes a ceiling, flooring, toilets, doors, windows, lighting, air conditioning, etc.
• Furthermore, there are some costs for the exterior facilities. Here the list includes pavements, security room, parking space, landscaping, etc.
• After building the complete infrastructure, some costs are required for marketing and promotion.
• For running the mall, you will need to employ employees. According to the size of the mall, this cost varies.
• And finally, You must have the capital for expenses like maintenance, utility bills, etc. Because in initiating a shopping mall business you must have working capital for the first 6 months.

Frequently Asked Questions

What is the typical timeline for building a shopping mall from start to finish.

The timeline can vary depending on factors such as land acquisition, regulatory approvals, construction complexity, and tenant leasing. On average, it may take 2 to 4 years or more to complete the entire development process.

How much capital investment is required to start a shopping mall business?

The capital investment can vary significantly based on factors such as land cost, construction expenses, infrastructure development, tenant fit-outs, marketing, and operational costs. A rough estimate could range from several crores to hundreds of crores of rupees.

What are the key factors to consider when selecting a location for a shopping mall?

Important factors include demographics, population density, purchasing power, accessibility, visibility, proximity to transportation hubs, road networks, parking facilities, competition, and potential for future growth.

What are the common revenue streams for a shopping mall business?

Revenue streams typically include rental income from tenants, revenue-sharing arrangements, parking fees, advertising and promotional revenue, event hosting fees, and income from ancillary services such as property management and facility rentals.

What are the legal and regulatory requirements for operating a shopping mall in India?

Legal requirements may include obtaining permits and licenses for land use, construction, fire safety, environmental compliance, signage, food safety, and entertainment licenses for cinemas or event spaces. Compliance with local municipal laws and building codes is essential.

What are the risks and challenges associated with operating a shopping mall business?

Risks include economic downturns affecting consumer spending, changing retail trends, competition from e-commerce, tenant turnover, regulatory changes, security threats, and operational issues such as maintenance and tenant disputes.

Is it advisable to invest in a franchise or partner with a developer for a shopping mall business?

It depends on individual circumstances and preferences. Partnering with an experienced developer or investing in a reputable franchise can provide access to expertise, resources, and established brand recognition, but it’s essential to carefully evaluate the terms and risks involved.

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The Big List of Shopping Mall Design Standards & Guidelines to Know

Maximize your roi with modern mall design standards that attract retailers and delight consumers.

May 11, 2023

Malls are evolving. From community hubs  for newly built suburbs in the 50s to fountain-in-the-middle havens for teenagers in the 80s, they are now re-emerging as entertainment centers catering to consumers of every stripe. Creating a smart design that fits the ethos of your neighborhood and target consumers can go a long way to making the project a success. Here are some mall design guidelines to think about:

• Layout design:  The anchor tenant model  is considered standard in mall design, with a few core stores serving as the biggest draws for consumers and supporting the smaller businesses. However, traditional anchor stores for malls (think Macy’s, JCPenney, or Nordstrom) have fallen on hard times . In response, some malls are rethinking the anchor tenant model  by using restaurants, entertainment centers, movie theaters, and even office spaces as main attractions.
• Building materials:  Aluminum, steel, and glass are the usual suspects in most modern mall designs. Retailers are leaving behind the giant box looks of yesteryear for sleek modern architecture . Reusable, eco-conscious materials like reclaimed wood can be added as accent features and in outdoor spaces, and working with locally sourced materials can reduce the carbon emissions that usually result from long-distance hauling of goods to construction sites.
• Energy efficiency and environmental considerations:  Malls can reduce their energy expenditure by installing LED light fixtures, utilizing motion sensors, and being conscious about keeping HVAC systems in good condition. Adding green spaces and patios with plants can offset carbon emissions, as well as provide mini-habitats for birds and a pleasant respite for shoppers.
• Interior design and aesthetics:  Whether you’re planning to build an indoor-only mall or have a mix of indoor and outdoor spaces, thoughtfully placed decor, furniture, and the overall flow of one area into another can significantly affect shoppers’ experience . If you’re following the anchor model, this is also a good time to involve your retail partners in planning foot traffic patterns  that maximize profitability by encouraging browsing.

Safety, accessibility, and security are crucial parts of shopping mall design standards. Some accommodations, such as having a certain amount of accessible parking spaces and bathroom stalls, are required by law . From wheelchair-accessible ramps and parking spaces to safety considerations during emergencies, these items are a must for any new retail center:

• Evacuation routes and emergency exits:  Your main entrance, anchor store entrances, and emergency exits need to be built in tandem with a thoughtful evacuation plan. Fires, active shooters, power outages, and other incidents are all threats you have to plan for and consider when designing a shopping mall. Communicating evacuation routes and procedures to the public via digital signage or through the use of digital indoor navigation is equally important.
• Accessibility features:  Features like ramps, accessible restrooms, and parking spaces are required by the Americans with Disabilities Act (ADA) , but the specifics will vary by state. You may also want to include guided navigation features for people with hearing or vision disabilities. It’s best to incorporate accessibility features early into your design with the understanding that they enhance the experience for all your shoppers — for instance, ramps are helpful not only to those in wheelchairs but also to people using canes, crutches or walkers, as well as very young children and people with strollers or carts.
• Loss prevention and security:  Shoplifting, employee theft, and accidental inventory mishandling can create shrinkage and loss for your tenants. While individual stores may want to implement additional security measures, you will need to install security cameras in common areas and engage a security service to help you with remote monitoring, safety patrols, and incident response.

Digital innovation is, paradoxically, coming to the forefront in brick-and-mortar retail. Shopping mall design standards now include augmented reality  to engage shoppers and provide retailers with valuable insights into customer preferences. Resonai’s computer vision enterprise program, Vera , helps retailers build and manage digital twins of their premises that allow for indoor navigation and an enhanced shopping experience. If you’re ready to learn more,  get in touch with Resonai today and set up a free demonstration.

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Business Plan For Buying an Existing Business

Business Plan Template

• Vinay Kevadia
• September 10, 2024

With millions of small businesses ready to be sold in the next decade or two, there are countless opportunities for eager buyers.

However, successful acquisitions aren’t guaranteed— 70-90% of business acquisitions fail. (The horror!)

Don’t want to be part of this statistic? You need a solid business plan to ensure you make a wise investment. This plan helps you understand the business’s value, foresee potential risks, and set clear growth goals.

In this guide, we’ll cover creating a business plan for buying an existing business . Let’s dive in and make sure your next business purchase is a success!

Why do you need a plan for purchasing a business?

A business plan is crucial when buying an existing company because it provides a clear roadmap for growing the business. It helps you understand the value of the business and makes it easier to secure financing by showing you have a solid plan in place.

For example, Elon Musk’s purchase of X (formerly Twitter) for $44 billion was a major move, but poor planning led to the company losing 72% of its value, causing big losses for Musk and his investors. A well-thought-out business plan could have helped avoid some of these problems by identifying challenges and setting realistic growth goals.

A good business plan also highlights potential risks, sets clear goals, and ensures a smooth transition, making it more likely for the acquisition to be successful.

By planning, you not only secure financing but also reduce the chance of facing unexpected financial issues, just like what happened with X’s sudden drop in value.

How to plan for buying an existing business

Planning to write an acquisition business plan is like taking a step back and evaluating every detail first. Here are 8 key steps to consider when planning to buy an existing business:

1. Consider starting with the existing business plan

Starting with the existing business plan of the company you want to purchase can provide you with a solid foundation for further planning.

This existing plan gives you a peek into the current strategies, goals, and operational processes of your potential new business. It ultimately helps you understand the target market, competitors, and other opportunities.

Additionally, it highlights existing growth opportunities and potential risks that the current management has identified, helping you to build on their insights.

For example, in 2011, HP acquired Autonomy Corporation for around $11 billion. However, not long after, HP claimed that Autonomy had inflated its financial numbers, leading to major legal disputes and a loss of $8.7 billion.

2. Assess existing liabilities and legal issues

When planning to acquire a business, one of the first things to do is to evaluate the target company’s existing liabilities and potential legal issues. It includes reviewing outstanding debts, pending lawsuits, tax obligations, and compliance with regulations.

As a Business attorney, Richard Harroch says, “You don’t want to inherit someone else’s legal problems.” Understanding these liabilities allows you to negotiate better company value, and contract terms, or decide if the acquisition is still a good deal.

Addressing these issues upfront can prevent costly legal battles or financial losses down the line.

3. Review existing contracts and agreements

When acquiring a business, reviewing all existing contracts and agreements is necessary. Reviewing them will help avoid potential conflicts and ensure a smooth transition. This review can also identify opportunities to renegotiate more favorable terms.

When reviewing an existing firm’s business plan for contracts and agreements, check the length of each contract.

Long contracts might lock you into unfavorable terms, while short ones can lead to frequent renegotiations. Look for details like renewal options, termination clauses, and penalty fees to understand potential risks and opportunities.

4. The initial balances

Conducting an initial financial check lets you understand the financial health of the business you want to buy. It involves reviewing financial statements like balance sheets, income statements, and cash flow statements to spot any issues like decreasing revenues or high debts.

This also helps you know if the business is profitable or sustainable in the long term and makes an informed decision about the purchase price.

Knowing the financial situation clearly allows you to negotiate better terms and ensures a successful acquisition.

5. Customer retention and transition

Keeping customers loyal during a business transition is a challenging task.  Here, it’s important to communicate with customers about the acquisition and reassure them that products or services will remain the same or get better.

Offering special promotions or loyalty programs can help keep key customers. Make sure customer service stays high-quality and any changes are clearly explained.

By focusing on customer retention, you can reduce troubles and build trust during the transition.

For example, when Amazon bought Whole Foods in 2017, they let customers know their shopping experience would get better. By lowering prices and communicating well, Amazon kept existing customers happy and attracted new ones.

6. Contingency and exit strategy planning

Having a Plan B is necessary if things don’t go as expected. For example, you might need a plan for what to do if the business doesn’t perform as desired or if there are any merging difficulties.

It’s wise to think about an exit strategy that outlines how you could leave the business if needed. In this situation, whether to sell the company to someone else or by merging it with some other business.

These strategies help you prepare for unexpected situations, minimizing potential losses while protecting your assets and investment.

7. Prepare a structured transition plan

A structured transition plan is key for a smooth change in ownership. This plan should include timelines, key milestones, and responsibilities for all the parties involved.

According to various studies, 70-90% of acquisitions fail to achieve their desired outcomes due to poor transition plans.

A good transition plan can reduce disturbances, keep employees motivated, and ensure customers stay happy during the change in ownership.

8. Update your existing plan to make it better

After buying a business, try updating the company’s existing business plan. Review the original plan for areas to improve, such as expanding into new markets, launching new products, investing in new equipment, or enhancing operations.

Regular updates ensure the plan stays aligned with market conditions and business goals, supporting growth and adaptability.

Areas to focus on when updating an existing company’s business plan include:

• Market expansion
• Product innovation
• Operational improvements
• Risk management
• Financial forecasts
• Competitive analysis
• Alignment with goals

Mistakes to avoid while writing a business plan for buying a business

While planning for the business plan of an existing firm, a small mistake can also have major consequences. So, better avoid mistakes like:

Failing to personalize the business plan

Not customizing the business plan to your specific vision, objectives, or operational style is a mistake. Customize the plan to reflect the opportunities and weaknesses rather than just relying on or copying the existing firm’s business plan.

Underestimating customer feedback

Avoid overlooking the importance of understanding customer feedback and managing the business’s existing reputation. Include a strategy for collecting customer feedback, handling complaints, and improving customer perception during the transition.

Ignoring cash flow management

Not creating a detailed cash flow management plan, could lead to liquidity issues. So, develop a cash flow forecast to ensure the business maintains liquidity for day-to-day operations and avoid unexpected expenses. You can even hire a financial advisor or use proper financial forecasting software for the same.

Neglecting supplier and vendor relationships

Failing to review and build relationships with existing suppliers or vendors is a huge mistake. So, plan a meeting with key suppliers and renegotiate contracts to ensure favorable relationships and consistent supply chain management.

Lacking clear communication

Ensure the business plan includes a well-defined communication system for employees, customers, suppliers, and other stakeholders to avoid miscommunication and ensure smooth operations.

Also, the business plan should include clear strategies to keep everyone informed and engaged throughout the transition process as well as afterward.

Plan for your new business using Upmetrics

In summary, a solid business plan is necessary to ensure success and growth. But, still wondering how to craft one that covers everything? Or maybe you’re not sure where to begin?

That’s where Upmetrics comes in!

With Upmetrics you can directly import the existing business’s business plan and update it with its AI or as needed. So, why wait, create a winning business plan with Upmetrics today!

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Frequently Asked Questions

What should be included in an acquisition business plan.

An acquisition business plan should include:

• Executive summary
• Company description
• Market analysis
• Financial projections
• Operations plan
• Risk analysis
• Legal and regulatory considerations

Do you need a business plan for buying an existing business?

Yes, you need a business plan when buying an existing business. It helps you understand the business, plan for its future, and secure capital. The plan includes details like market analysis, financials, and strategies for managing and growing the business after the purchase.

What are the financing options for buying an existing business?

Financing options for buying an existing business include:

• Seller financing
• Investor financing
• Personal savings or assets

What are the risks involved in buying an existing business?

Risks involved in buying an existing business include hidden financial problems like undisclosed debts or declining revenues and legal issues such as unresolved lawsuits or regulatory violations. Additionally, there are operational challenges in incorporating new management and aligning company cultures.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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‘A renaissance:' Golf Mill Mall to see massive, $450M redevelopment with luxury apartments, stores and more

60 years ago, golf mill mall in suburban niles was the "premiere shopping center in the united states", by francie swidler and anita selvaggio • published june 14, 2024 • updated on june 14, 2024 at 2:21 pm.

Golf Mill Town Center Mall, in Niles, is the latest suburban Chicago mall to ramp up major redevelopment efforts.

Earlier this week, the village held public open houses and unveiled renderings of what the project is expected to look like, which includes completely rebuilt stores, restaurants, luxury apartments --- and even a new water mill.

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Officials described the redevelopment of the decades-old mall -- once anchored by department stores like Sears, Roebuck & Co. -- as a "renaissance."

“Throughout the years, Golf Mill has been known to be more than just a shopping center," Niles Mayor George D. Alpogianis said in a release. "For generations, families have celebrated traditions there; people of all ages have congregated there and our businesses have thrived there. The Golf Mill Town Center redevelopment is a catalyst for a renaissance of the mall, surrounding businesses and our village."

The mall's online directory shows the center is currently home to 44 shops and restaurants, and an AMC Movie Theater. According to Alpogianis, the new plan calls for nearly "everything on site" to be knocked down, except for the mall's freestanding stores which include JCPenney, Target, Ross, Ulta and Burlington, Alpogianis said.

The redevelopment, part of a public-private venture between the village, OKW Architects and mall owner Sterling Organization, shows a bustling plan that reinvents the mall to become entirely outdoors, a hearkening back to the mall's early days before it became enclosed. It also includes a three-acre pond and a "mill wheel," which suburban residents may find familiar.

"When Golf Mill was originally built, there was an area of water and stream that ran through it, and there was a wheel that turned, like a mill," Alpogianis said. "So they want to put that back in there, for nostalgic purposes."

According to Alpogianis, the plan is intended to make the mall a place to "live, work and play," with 70% retail and entertainment and 30% luxury housing in the form of apartment buildings, along with office buildings, a pedestrian promenade, medical facilities, a park and potentially a hotel.

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The project -- expected to cost $450 million -- will be partially funded through Tax Increment Financing incentives, Alpogianis said, stressing that property taxes for residents were not expected to go up.

Alpogianis did not provide specifics on how long the two-phase project could take.

"It's a crazy market with interest rates right now," he said. "We're hoping it's going to happen very soon."

It's not the only suburban mall that recently announced big development plans, including luxury apartments to its footprint. In 2025, Skokie's Old Orchard Westfield Mall is expected to break ground on the construction 400 luxury apartments  and 15,000 square feet of street-level retail set to front an outdoor park and event space.

According to Alpogianis, Golf Mill Mall was built in the early 1960s. By the early 2000s, however, the center began declining.

MORE: 2 suburban Chicago malls close their doors permanently within weeks of each other

"Once it was built, it was considered the premiere shopping center in the United States," Alpogianis said. "Anyone and everyone who you could have imagined was there, in terms of shopping."

The center also once boasted a venue called the "Mill Run Theatre," which hosted popular acts like Frank Sinatra, The Jackson 5, George Carlin and the Partridge Family "in the round."

Alpogianis said when he ran for election in 2021, he promised Niles residents that he would restore the mall "to its heyday again."

"We're about here now," Alpogianis said, noting that the plan was set to go before the village board later this month.

Golf Mill Mall is located in Niles, at the intersection of Golf and Milwaukee roads.

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UAE’s Lulu Group unveils plans for $480 million Mall in Ahmedabad, will create 3,000 jobs

Ma yusuff ali, cmd of lulu group, said he is happy to be investing in india, highlighting the mall project, which will create 3,000 jobs. billed as 'india's largest shopping mall' construction will begin in ahmedabad in 2024..

Expressing joy at investing in India, Ali told the news agency that he is "very happy to give employment to his fellow citizens (Indians)". He further added that the company is receiving "full support" from the Centre and ministries.

The Project

"India's biggest shopping mall is in Ahmedabad . We already got the land. I am getting full support from the central government, the Ministry of Commerce and all the ministries of the central government," he said.

"This is one of the biggest projects that we inaugurated today. It is about 3,50,000 sq ft. (and) 3,000 young boys and girls are working here. I am very happy to give employment to my fellow citizens," Ali added.

The mall will be built at an estimated cost of ₹ 4,000 crore, as per the report; and in an earlier interaction, Ali said construction is expected to begin this year (2024).

Hints For More

Speaking to ANI in September 2023, Ali hinted at two large shopping mall projects in India — in Chennai and Ahmedabad, the report said.

"We are going to construct one of the largest shopping malls in Ahmedabad and Chennai, and we are opening our shopping mall in Hyderabad at the end of this month. Also, we are going to different states for shopping malls and food processing," he said, speaking to ANI last year.

Lulu, at present, has malls in six Indian cities — Bengaluru , Coimbatore, Hyderabad, Kochi, Lucknow, and Thiruvananthapuram. The one in Hyderabad was inaugurated last year.

About Lulu Group

Headquartered in Abu Dhabi, UAE, Lulu Group International is known as a "trendsetter" in the Middle East and North African retail industry, as per the ANI report.

The retailer operates more than 250 hypermarkets and supermarkets and is popular across the GCC, Egypt, India, Indonesia, and Malaysia .

Lulu Group employs more than 65,000-plus strong workforce from 42 different nations and has an annual turnover of USD 8 billion globally.

(With inputs from ANI)

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