Strip Malls See Rise in Foot Traffic in the Post-Pandemic Era

Dec 18

The retail landscape is undergoing a transformation, with strip malls emerging as a cornerstone of convenience in the post-pandemic world. GDL Capital is at the forefront of this revival, capitalizing on the evolving consumer preferences that underscore the value of these accessible retail havens.

Convenience Drives Popularity: The in-and-out convenience of strip malls, especially their location along main roads, is attracting more consumers looking for quick and accessible shopping experiences.
Revitalization Efforts: Formerly overlooked, strip malls are receiving facelifts, turning them from eyesores into sought-after retail spaces, boosted by increased work-from-home arrangements.
Increased Weekday Traffic: As work habits shift, foot traffic in strip malls has risen, with an 18% increase in visits since before the pandemic, mainly from locals who frequent these centers for brief shopping trips.
Attracting Big Names: National chains like Starbucks are choosing strip malls, leading to a spike in average rents and making these spaces competitive and profitable for both owners and tenants.
Macy’s Embraces the Trend: Macy’s is planning to open 30 smaller stores in strip malls, validating that these locations outperform traditional mall stores due to their appeal to service-oriented businesses and convenience for consumers.

The renaissance of strip malls aligns perfectly with GDL Capital's investment vision, offering a compelling mix of profitability and practicality. With consumer behavior indicating a sustained preference for the convenience that strip malls provide, these centers are poised for continued growth and success. As hybrid work models persist, GDL Capital is strategically positioned to leverage the demand for retail spaces that cater to a blend of shopping and services.

*Read more in the National Law Review’s Strip Mall Revival written by Jessica N. Vara of Hunton Andrews Kurth (Hunton Retail Law Resource) and posted on Tuesday, December 12, 2023.