Shopping malls have long been considered risky investments—and not without reason. The recent spate of shopping mall closings in the United States, including several that shut down within the last year, means that there are fewer shopping malls available to the average investor than ever before. But despite their reputation, many malls are still profitable investments, and they make up an important part of most investors’ portfolios. This article explains why you shouldn’t write off shopping malls as an investment, even in light of recent changes in the industry.
The Evolution of Retail
The days of shopping malls are, in many ways, numbered. But that doesn’t mean they aren’t valuable investments anymore. As consumers continue to shift their spending habits online, physical retail spaces will be left to compete for a smaller share of consumer dollars. For investors looking to get into real estate and capitalize on these changes, now is a great time to consider investing in shopping malls—as long as you do your homework first. Here’s how to invest wisely and profit from one of America’s favorite pastimes: consuming!
Trends in Online Retail
Just because you don’t see a line of people waiting to get into your store doesn’t mean customers aren’t still buying. New technology is allowing consumers to shop from home, in a store, on-the-go, and anywhere in between. And that means brick-and-mortar shops have some advantages online retailers can’t match. Like human interaction. Consumers like talking to salespeople—or at least they do if they like them enough to remember them later on when they’re ready to buy something. Also, stores often provide hands-on experiences shoppers can’t get from shopping online—like trying out new fashions or listening for sounds emanating from their newly purchased electronics.
Where Will We Shop?
If you’re looking to buy real estate, there are a lot of things to consider. The biggest is probably finding a property that will appreciate in value. To find properties that will be good investments, there are a few key questions you need to ask yourself: Do I have enough money for a down payment? Does it make sense for me to invest in an apartment building instead of single-family homes? Will I be able to rent out all my units if I want to? Is my property in a good location and easy for tenants to get around from place to place? These are all things you should think about before buying any investment property.
What should I invest in?
Investing in real estate is a smart way to make money over time, but with so many ways to invest in property, it can be hard to know where to start. Take into account your own financial circumstances and situation when deciding how much (or little) risk you want in your investment portfolio. Just remember that any investment carries some level of risk. Your goal should be finding a happy medium between too much risk and not enough reward. That’s why shopping malls make such great investments – they’re both solid investments and carry less risk than other types of property. When compared to residential real estate or commercial retail space, shopping malls offer strong returns while also having comparatively low risks involved – and here are some reasons why
How do I find a good investment property?
It depends on where you invest. In some markets, like San Francisco or New York City, your return could be in excess of 10 percent annually—and that’s after taxes and maintenance costs. If your goal is long-term wealth creation, consider looking for undervalued properties in up-and-coming neighborhoods that are close to downtown areas with growing populations (young professionals tend to drive up rents). The more demand there is for housing in a particular area, the more likely it is that rent prices will increase over time.