Prudential Financial

• Super regional center—has three or more major department stores, is often enclosed (mall), is 750,000 to 1 million square feet, and draws from a large trade area of 12 miles or more.
• Regional center—has one or two department stores, a variety of smaller stores, and is larger than 300,000 square feet. It will draw from an eight-mile radius or more.
• Community center—usually has a supermarket, junior department store, and a variety store, is larger than 100,000 square feet, and draws from a three- to five-mile radius.
• Neighborhood center—is built around a supermarket and/or drugstore, provides convenience goods and services to a neighborhood, is 30,000–100,000 square feet, and draws from a one- to three-mile radius.
• Convenience center—is a small cluster of stores along a street, 5,000–40,000 square feet; trade area is the immediate neighborhood. May have a convenience market, laundromat, dry cleaner, etc.
• Specialty center—often has a theme, usually has no anchor tenant, and generally is local in influence. Examples might be home-improvement centers, gift shops, or auto service and sales.

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• Improvement allowances—The landlord budgets for carpeting, tile, bathrooms, etc.; additions to basic leased area. This allowance is sometimes called "T.I." (tenant improvements).
• Location—traffic counts, ease of access to store, convenience to shoppers.
• Cost of occupancy—expense pass-through, improvements, insurance, etc.
• Overall draw of customers to center—Does center have a steady stream of shoppers?
• Demographics—Are goods or services attractive to people in the trade area?
• Effectiveness of management—Does the landlord respond to complaints or suggestions?
• Parking availability—Is there adequate parking for customers?

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• Physical condition of property—Is the price adjusted to reflect the condition of physical plant?
• Net income generated by leases—What is left after expenses of operation are paid?
• Occupancy level and tenant mix—Are there vacant ("dark") spaces? Are tenants attracting shoppers?
• Stability of tenants—What is the turnover rate? How long have tenants occupied the center?
• Upside potential in income—Are rents under market? Do leases escalate to keep pace with inflation?
• Protection from large increases in operating expenses—Tenants share in expense increases; physical condition of center is good without deferred maintenance.
• Area growth patterns—Is area gaining or losing population? Will new competition emerge?

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