Strip mall anchors come up short in COVID-19’s wake

The coronavirus pandemic is posing a bigger commercial real estate challenge than what we see in the residential market. The primary reason is commercial real estate is driven by cash flow, while residential real estate is price based.  New research shows those strip mall landlords who used to be able to rely on spillover foot traffic from a popular store as an anchor isn’t working. Many of the out-parcels are non-essential businesses. “In the future, there will have to be a better understanding of crossover between stores instead of relying on the assumption of a customer halo effect around a high-traffic retailer,” according to a recent post in promodo.

Categories: ECONOMY