Shopping for Commercial Space? Here Are 13 Types of Retail Properties
- Gabriella Walling
- Sep 25
- 9 min read
In the retail classification of commercial real estate classes, there are many types of buildings that have different intended purposes. Understanding these intended purposes is useful for investors, renters, and developers, as it can help them paint a more accurate picture of how these properties should be valued.
Would you like to unlock information about 98,000+ companies and 535,000 CRE professionals who work in retail CRE? Let Biscred show you how:
The types of retail properties will have several advantages and disadvantages based on a number of factors including competition, location, pricing, market fluctuations, and more. Retail buildings are the brick-and-mortar for B2C shopping, so the more specifically that you can define a piece of commercial real estate, the better. That said, there is some overlap between the different types of retail properties that we’ll outline.
It should also be noted that the classifications of retail properties will differ in the eyes of local governments and taxing authorities, developers, property managers, and even tenants.
Anchor store meaning: You'll see the phrase "anchor store" used throughout this list. Anchor refers to "main attractions" in shopping centers. Grocery stores, for example, are anchor stores for many local strip malls because they attract foot traffic that the other stores might benefit from. Department stores are anchor stores for shopping malls.
That said, here are 13 different types of retail properties and how they’re loosely defined.
Quick Comparison: Retail Property Types
13 Types of Retail Properties
1. Malls
How is a mall defined in commercial real estate? A shopping mall is a large retail property, typically 400,000 to 800,000 or more square feet with inward-facing stores, enclosed walkways, surrounded by large parking lots, and anchored by one or more large department stores, such as Macy’s or Dillard’s.
Super-regional malls exceed 800,000 square feet (e.g., Mall of America).
Because of e-commerce, the number of malls is shrinking, with only about 700 remaining in the U.S. (although some reports suggest this may be changing).
How many malls are in the U.S.? Because of the rise of e-commerce and online retailers, the number of malls is generally declining. The number of malls in the U.S. varies, as some sources count outlet malls, strip malls and fashion centers in their statistics. Business Insider estimates there are around 700 malls still in the U.S., which it predicts will dwindle to 150 by 2032, while Capital One Shopping estimates 1,200 malls.
2. Shopping Center or Strip Mall
What is a strip mall? A shopping center or strip mall is a smaller retail complex, generally less than 30,000 sq. ft., with parking in front. They often feature a grocery or hardware store as an anchor, plus small shops, cafes, and services.
They draw customers from about 1 mile or less.
Common in suburban and neighborhood areas.
How do strip malls differ from malls? Strip malls are smaller, locally convenient shopping centers, while malls are larger and enclosed regional shopping destinations.
How many strip malls are in the U.S.? The International Council of Shopping Centers (ICSC) reports 114,528 such “marketplaces,” but that includes shopping centers, main streets and malls. So, there is overlap in ICSC data between strip malls and shopping malls.
3. Community Retail Center
What is a community retail center? A community retail center is a larger version of a strip mall, typically 150,000 to 350,000 square feet, with multiple anchors such as a grocery store, drugstore, and restaurants. Community retail centers serve as mid-sized hubs with several anchors.
Customer base: 3- to 6-mile radius.
~10,000 exist in the U.S.
How many community retail centers are there in the U.S.? According to ICSC research, there were almost 10,000 community centers within the United States.
What’s the difference between strip mall vs. community retail center? The retail center is a little bigger than a strip mall and has one or two anchor stores, like the Aldi and Dollar Tree in this Memphis, Tenn., plaza.
4. Power Center
How do you define a power center? A power center in retail is dominated by big-box anchors like Target, Best Buy, or Home Depot, often making up 75% to 90% of leasable space. Power centers tend to cluster multiple big-box retailers in one destination.
Size: 250,000 to 600,000 square feet
Location: Often near highways
Customer base: 5 to 10 miles.
According to ICSC research, there were around 2,200 power centers in 2017.
How does a power center differ from other types of shopping centers? A power center tends to be a cluster of big-box retailers, designed to be a regional shopping destination, while other smaller convenience-type shopping centers are locally focused.
What’s the difference between a power center and a mall, then? A mall is enclosed and much larger, anchored by one or more department stores, while the power center is a cluster of strip centers and even stand-alone buildings.
5. Fashion Center
What is the definition of a fashion center? All fashion centers may be malls or shopping centers — but not all malls and shopping centers are fashion centers. A fashion center is defined by having several high fashion retail stores with famous, well-known brands in an 80,000 to 250,000 square foot space. Fashion centers may have anchor department stores that are larger, luxury department stores. They may be entirely indoors or have outdoor spaces. They also tend to attract customers from the same radius as malls at 5 to 15 miles. Examples of fashion centers include Fashion Centre in Pentagon City (Virginia), Scottsdale Fashion Square (Arizona), and The Fashion Mall at Keystone (Indiana).
Size: 80,000 to 250,000 sq. ft.
Examples: Saks Fifth Avenue, Nordstrom, Neiman Marcus.
Radius: 5 to 15 miles.
Fashion centers aren’t officially recognized, so data isn’t available on how many there are in the United States. However, they are generally rarer.
6. Factory Outlets
What are factory outlets? A factory outlet center is primarily for clothing manufacturers and retailers to sell discounted and overstock goods. However, shoppers also find a number of household brands at outlet centers, as well. Outlet stores are where brands sell products that may have been overstocked, closed out, or reduced in price for a number of different reasons. They will generally be 50,000 to 400,000 square feet in space. However, they draw customers in from a large radius of 25 to 75 miles.
How many outlet centers still exist in the U.S.? Outlet Bound lists just over 220 outlet centers in the U.S. as of 2025.
7. Out Parcel
What’s an out parcel? This classification of real estate involves parcels of land that are part of a larger piece of property. These parcels are then leased out to individual retail tenants like fast-food restaurants, shops, and others. Other types of retail CRE may out parcel land to retail, as this model can be used with shopping centers and strip malls, for example. Common uses of out-parcels are banks and fast-food restaurants.
8. Big Box Retailers
What does “big box retailer” mean? Big box retailers are exactly what the name implies — megastores that take up a lot of square footage and dominate a shopping area. Some examples of big box retailers are Costco and Sam’s Club. A piece of big box retail property will be between 30,000 and 200,000 square feet and have only one large store. The number and distance of customers that big box retailers draw in will vary significantly by location.
Big box retail refers to standalone megastores like Costco, Sam’s Club, or Walmart.
Size: 30,000 to 200,000 square feet
One dominant retailer per property.
Big box retailers are large-format stores that dominate their site.
9. Free Standing Retail
What does free-standing retail mean? Freestanding retail is a single-tenant building not attached to other stores. Examples include CVS, Walgreens and Starbucks.
How is free-standing retail different from big-box? We listed this type of retail after the big box CRE type because they’re the most similar. Only, freestanding retail is smaller. They’re similar to big box retailers in that they will have freestanding buildings that aren’t connected to other retailers. This piece of CRE is single-use, so its size and customer radius will vary depending on the brand.
10. Convenience Retail
What is convenience retail? A convenience retail center is the smallest form of strip mall, typically under 30,000 square feet. They generally only having a couple of stores with a small on-site parking area. The name comes from the fact that convenience stores typically serve a local radius of about 1 mile.
What’s an example of convenience retail? Stores such as 7-Eleven are the most common retailers found in this type of retail CRE. You might also see dry cleaners, nail salons, specialty shops and small fitness studios in convenience retail buildings.
11. Mixed-Use
What does mixed use mean in real estate? Mixed-use properties combine retail with office, residential, lodging or some other asset class. The size and specifications of a mixed-use property can vary significantly. Assess each unique piece of mixed-use property based on the two or more types that it combines.
What are examples of mixed-use retail? Mixed-use is commonly found in urban areas. A mixed-use property may be a shopping center with retailers on the ground floor and offices or apartments on the second and third floors. In urban spaces where square footage is limited, mixed-use properties are common.
12. Theme/Festival Center
What is a theme or festival center? Theme centers focus on a single attraction or entertainment theme.
A theme or festival center is a piece of CRE that’s strictly leisure, tourist, or retail with the caveat that it has stores under the umbrella of a single theme. They’re generally only in very urban areas near historic districts, entertainment centers, and amusement parks. A specific type of entertainment such as an aquarium or a zoo might serve as the anchor for this CRE. This type is generally 80,000 to 250,000 square feet and draws an audience from a large radius of 25 to 75 miles.
What’s an example of a theme retail center? The Universal Studios’ CityWalk, open to the public, is an example of a theme retail center, which are often near destination attractions like theme parks and sports arenas.
13. Office/Industrial Conversion
What is an office or industrial conversion to retail? These are redeveloped office or warehouse spaces that have been turned into retail or mixed-use properties.
The prevalence of work-from-home businesses has led to more office buildings sitting empty in lieu of prospective tenants. As a result, there has been a rise in offices and industrial spaces, with prime locations being converted into retail property. This may be a mixed-use conversion where part of the space is maintained as offices while retailers and amenities are added to make the space more attractive to prospective renters. Others may be total conversions, or urban renewal projects, with local governments and developers.
Office/industrial conversions are an exciting, recent occurrence that opens up many retail opportunities that were previously inaccessible. The average square footage and customer radius is still a developing statistic that will vary greatly on the location of the conversion.
What’s an example of an industrial-retail conversion? The Flats in Cleveland is an example of industrial retail conversion, where warehouses and factory spaces have been converted to condos, restaurants, entertainment venues and retail spaces.
Understanding Retail Property Types in CRE
From neighborhood strip malls to massive super-regional malls, retail properties come in many shapes and sizes, each serving different roles in how consumers shop and how businesses succeed. For investors, developers, and tenants, knowing the differences helps with smarter decision-making, whether that’s evaluating property value, projecting foot traffic, or planning tenant mixes.
As the retail landscape evolves with e-commerce, mixed-use development, and adaptive reuse projects, one thing remains constant: Retail centers are the face of commercial real estate for communities everywhere. Understanding these property types is the first step to navigating opportunities in this ever-changing market.
Comments