What is a power center?
A power center is a large (250,000-750,000 sq ft) outdoor shopping mall that typically contains three or more “big box” stores. This type of property may include a small retail store or restaurant located in a separate or strip plaza and surrounded by shared parking. The power center is built for the convenience of the driver. Unlike traditional indoor shopping centers and large stand-alone supercenters, power centers often have unique architectural features.
- A power center is a large outdoor shopping center that typically contains three or more large “box stores”.
- Other stores in the Power Center may include small retail stores and restaurants located in separate or strip plazas and surrounded by shared parking.
- Power centers are often designed to make large anchor tenants more visible to consumers, and additional retailers are arranged to complement their presence.
- Recently, an old shopping center has been refurbished to be converted into a power center.
- Some power centers are built vertically to accommodate space limitations in dense areas.
The first power center opened in 1986 in Colma, California. Since then, the power center model has steadily surpassed traditional shopping malls. Refurbishing old malls usually requires turning them into power centers rather than adding new retail spaces to existing facilities. For space reasons, the power center is mainly in the suburbs. The exception is when urban areas are redeveloped to accommodate power centers.
Power centers are often designed to make large anchor tenants more visible to consumers, and additional retailers are arranged to complement their presence. For example, major anchor tenants could include large supermarkets, furniture distributors, and large electronics and consumer electronics retailers. Each major tenant offers frequently sought-after products that consumers purchase on a regular basis. Anchor tenants are usually chosen not to compete with or cannibalize each other’s customers.
For example, a customer who visits a supermarket replenishes food at home. They may also stop by an appliance retailer to find a new refrigerator for their kitchen. When you visit a furniture store, you have the chance to choose a new sofa for your living room.
Small tenants in power centers can be specialty retailers and eateries. This includes hair salons, nail salons, wine shops and wireless phone sellers. A small casual, quick-service dining facility can be placed here to provide a place for shoppers to dine as they move between anchor tenants. The time consumers spend in power centers can be increased by the various options available. Including cinemas in such properties adds entertainment options to attract more visitors.
Power centers are unaffected by market whims and recessions. Some major tenants failed during the 2008 financial crisis and went out of business. Large vacancies could reduce property draws and reduce the interest of the rest of the tenants to stay in the property.
Power center type
Some renovations of the shopping center include the demolition of old buildings and the installation of new power centers. However, some power centers are created by adding an external shopping area to an existing mall. This may include extensions to buildings adjacent to the mall, such as strip mall style buildings and large supermarkets.
Some power centers, on the other hand, are built vertically to accommodate areas of limited space. In other words, the power center consists of multiple floors, with stores and parking lots stacked vertically.