The lowly neighborhood strip mall might be the hottest new thing in commercial real estate - Business Insider

# The Lowly Neighborhood Strip Mall: The Hottest New Thing in Commercial Real Estate

Strip malls, those unassuming rows of small shops and businesses lining suburban streets, are making a surprising comeback in the world of commercial real estate. Once seen as outdated and unglamorous, these humble shopping centers are now being reimagined as hubs of community activity and economic opportunity. Let’s dive into why strip malls are suddenly in the spotlight and what this means for the future.

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## Historical Background: From Humble Beginnings to Modern Revival

### The Rise of Strip Malls

- **Post-WWII Boom**: Strip malls emerged in the 1950s and 1960s as America’s suburbs expanded. They were designed to serve the growing middle class with convenient access to everyday goods and services.

- **Affordable and Practical**: Developers favored strip malls because they were cheaper to build than enclosed shopping malls. They typically featured a row of stores with shared parking in front.

- **Decline in Popularity**: By the 1990s and 2000s, strip malls began to lose their appeal. Big-box stores, online shopping, and the rise of mega-malls overshadowed these smaller centers. Many strip malls fell into disrepair or were abandoned.

### The Modern Revival

- **Changing Consumer Habits**: The pandemic accelerated a shift toward local shopping and community-focused experiences. People began to value convenience and proximity over sprawling shopping destinations.

- **Adaptive Reuse**: Developers and entrepreneurs are now repurposing old strip malls into mixed-use spaces, combining retail, dining, fitness centers, and even coworking spaces.

- **Affordability for Small Businesses**: Strip malls offer lower rents compared to high-end retail spaces, making them attractive to small businesses and startups.

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## General Public Opinion: A Mixed Bag of Views

### Positive Perspectives

- **Convenience**: Many people appreciate the ease of accessing multiple services in one location, from grocery stores to hair salons to coffee shops.

- **Community Feel**: Strip malls often foster a sense of local identity, with small businesses that reflect the character of the neighborhood.

- **Economic Opportunity**: They provide affordable spaces for entrepreneurs, especially in underserved areas.

### Negative Perspectives

- **Aesthetic Concerns**: Some view strip malls as eyesores, with their plain designs and large parking lots.

- **Traffic and Noise**: Increased activity in strip malls can lead to congestion and noise, which may bother nearby residents.

- **Perceived Decline**: For others, strip malls still carry the stigma of being outdated or associated with economic decline.

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## Counterarguments: Why Some Are Skeptical

### Strip Malls Aren’t for Everyone

- Critics argue that strip malls cater primarily to car-dependent suburban areas, leaving urban and rural communities underserved.

- Some believe that the focus on strip malls distracts from the need for more innovative and sustainable urban planning.

### Competition from Online Retail

- Despite their resurgence, strip malls still face stiff competition from e-commerce giants like Amazon. Critics question whether they can truly thrive in the digital age.

### Gentrification Concerns

- As strip malls are revitalized, there’s a risk of displacing long-standing small businesses or increasing rents, which could push out local entrepreneurs.

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## Implications: What This Trend Means for the Future

### Economic Growth

- The revival of strip malls could stimulate local economies by creating jobs and supporting small businesses.

- They may also attract investment to neighborhoods that have been overlooked by developers.

### Community Building

- By offering spaces for social interaction, fitness classes, and local events, strip malls have the potential to strengthen community ties.

### Environmental Considerations

- Developers have an opportunity to make strip malls more sustainable by incorporating green spaces, solar panels, and energy-efficient designs.

### Lessons Learned

- The strip mall revival shows that even the most overlooked spaces can be reinvented to meet modern needs.

- It highlights the importance of adaptability in commercial real estate, as consumer preferences and economic conditions continue to evolve.

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## Conclusion: A New Chapter for Strip Malls

Once dismissed as relics of the past, strip malls are proving their resilience and relevance in today’s economy. By embracing change and focusing on community needs, these unassuming shopping centers are carving out a new identity. Whether you love them or hate them, strip malls are here to stay—and they might just be the hottest new thing in commercial real estate.