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Paul Sternberg of Houston highlights benefits of investing in retail strip malls
As investment properties, strip malls boast all of the same benefits as any other commercial real estate purchase. By their very nature, however, traditional retail strip malls also enjoy numerous other benefits, according to Paul Sternberg, a Houston, Texas Local, experienced real estate investor, entrepreneur, and businessman.
“First and foremost,” says Sternberg of Houston, “away from the bright lights of larger shopping malls, strip malls benefit from being more local, more convenient for customers, and therefore often more lucrative for local or small business owners.”
According to figures by Statista, the market research and business intelligence portal, over a quarter of Americans now claim to favor local businesses and brands over larger national or international alternatives. “Retail strip malls are the perfect location for businesses catering to these customers,” points out Paul Sternberg, highlighting how a change in public shopping habits has driven up the desirability of strip mall premises among business owners.
Purely from an investor’s perspective, strip malls also enjoy numerous other benefits according to the Houston-based entrepreneur and businessman. “By purchasing a strip mall, a real estate investor is acquiring multiple self-contained units, but on a shared site,” he explains.
Benefits of Paul Sternberg of Houston
This, says Paul Sternberg of Houston, has many benefits. “Purely from a maintenance perspective, for example, you’re effectively managing one large property, in one location, rather than multiple properties across several locations throughout a town or city,” he adds.
Sternberg also goes on to explain that, with a good location, a well cared for strip mall will benefit not only from multiple tenants but typically multiple tenants from a broad spectrum of business types or industries. “A good strip mall may contain a bank, a fast food outlet or restaurant, hairdressers, health and beauty, computer repairs, automotive services… the list goes on and on,” he remarks.
This diversity, according to Paul Sternberg, means that even if one tenant’s industry suffers a downturn, the same downturn is unlikely to affect all businesses within the same strip mall. “Often when one industry is struggling, another will be thriving, so there’s a certain level of assurance and security in strip malls as real estate investments,” he adds.
What’s more, Sternberg also reveals that strip mall investments can be personally rewarding, especially when investing locally.
“By investing in a local strip mall property,” he adds, wrapping up, “you’re providing prime retail space for local businesses, benefiting those who live in the area, and playing a positive role in the local community, while simultaneously making a sound real estate investment.”