In this guide

Shopping Mall Cost by Type

Shopping malls come in many shapes and sizes. They can be fully enclosed or open-air, have anchor stores or not, and have varying numbers of floors, anchors, and features. These variations account for differences in cost, either through size or the amount of construction and finishing necessary. Below are the average costs to build each type, based on the most common size for each type and the average cost to build:

Cost to Build a Strip Mall

Strip malls are simple, outdoor malls in either a straight line of stores or a U shape. They may or may not have an anchor or a large store designed to attract customers who will then move on to the other stores in the strip. They can be as small as 3 stores, or as large as 12 or more stores. They cost $250 a square foot to build, with an average cost of $3,304,500.

Neighborhood Shopping Center

A neighborhood center is designed to serve the needs of a specific area. It usually contains a supermarket or grocery store as an anchor, with several smaller stores, restaurants, or other mixed-use buildings. Each store is entered from the outside, like in a strip mall. They cost $250 a square foot to build, with an average cost of $17,956,750.

Theme Mall

A theme mall is usually made of shops or services that all center on a single theme, such as an antique mall where all the shops sell vintage or antique goods. They can be stand-alone buildings or made as a strip mall. They cost $250 a square foot with an average cost of $36,947,750.

Community Shopping Center

A community shopping center is a larger version of a neighborhood shopping center or a large strip mall. They usually have at least one anchor, two anchors being common, such as a supermarket and a gym or movie theater. They can be arranged in a straight line or a U, depending on placement. They cost $250 a square foot to build, with an average cost of $49,377,250.

Outlet Mall Prices

An outlet mall or factory outlet mall is a group of stores selling brands at a discount. They can be arranged like a mall, without a roof overhead, or like a large strip mall. They cost $250 a square foot to build, with an average cost of $59,515,000.

Lifestyle Shopping Center

Lifestyle shopping centers are a relatively new type of mall. They may include luxury apartments or condos as part of the structure and high-end retail, restaurants, entertainment, and outdoor dining. The shopping is usually indoors like a typical mall, and they can be of any size. They have an average cost to build of $350 a square foot with an average cost of $100,755,600.

Power Center

A power center is a type of strip mall made up of mostly large anchor-style stores. These include grocery stores, furniture outlets, discount clothing stores, fitness centers, and other large establishments. There may be a few smaller retailers mixed in. They cost $250 a square foot to build, with an average cost of $109,656,500.

Regional Mall

The regional mall is the shopping center most often categorized as a “mall.” This is an indoor shopping environment with 2 to 3 large anchors and at least one restaurant. They are often two stories, although some are one story, with a more sprawling layout. They often include a mixture of mid-range and high-end retailers and cost $300 a square foot to build. They have an average cost of $176,897,700.

Super Regional Mall

The super regional mall is an exceptionally large mall that can be considered a destination. They have several anchors and restaurants, sometimes attached housing, and multiple types of entertainment. They are twice the size of regional malls and may be even larger. They cost $450 a square foot to build, with an average cost of $564,921,900.

Shopping Mall Space Requirements

The exact space requirements for your shopping mall vary tremendously based on the mall’s size, whether you have a cinema or restaurant, the number and size of these establishments, and the mall type. Restaurants and cinemas require roughly 2 to 3 times the amount of parking that the rest of the mall needs. So, a strip mall without these anchors uses less space than a strip mall that includes them, even if the rest of the mall is equal in size.

You need approximately one acre of parking for every 15,000 sq.ft. of retail space. This varies, and parking garages cut down on the amount of space. Some cities and towns may also have stipulations or ordinances you must follow, so it is always best to check with the city planning board about the mall type and size you want to construct.

Mall Construction Costs

The construction of any mall has many variables. The actual building is one part, but there are also innumerable finishing costs, soft costs, and contractor fees that make up the total figures. While every project is unique, it is possible to break down some of the more common costs to see where your money is going during the project.

• Architect fees - 17% (added)
• Builder fees - 14% (Plus an additional 14% to 15% extra on top of costs)
• Equipment Fees - 8%
• Construction material - 40%
• Outfitting (finishing costs) - 38%

Expect to use the following professionals at these rates:

• Excavators - $70/hour
• Mason - $70/hour
• Carpenter - $70/hour
• Electrician - $40 - $120/hour
• Painter - $49/sq.ft.
• Plumber - $45 - $200/hour
• Structural Engineer - $100 - $500/hour

In addition, outfitting costs for a mall:

• Displays and fixtures - $8 - $12/sq.ft.
• HVAC: $3 - $5/sq.ft.
• Roofing: $4 - $6/sq.ft.
• Ceiling: $1 - $2/sq.ft.
• Indoor signage - $1/sq.ft.
• Outdoor signage - $1.50/sq.ft.
• Lighting and electricity - $4 - $5/sq.ft.
• Flooring - $3 - $5/sq.ft.

Average Number of Stores in a Mall

A regional mall can have anywhere from 20 to 80 stores in the enclosed space on average. A super regional mall has a minimum of 75 stores and usually has more. Power centers and luxury high-end malls usually have between 25 and 50 stores each.

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Outlet vs Mall

The word “mall” has many variations, including a factory outlet mall and an outlet mall. In this case, the outlet is a group of stores contained in a single building. They may be grouped facing inward like a traditional mall without a fully enclosed ceiling, or they may be grouped more like a strip mall.

However, a single outlet is a discount store for a large brand. An outlet can be a single stand-alone store either in a strip mall or off entirely on its own. To make shopping easier, many brands group their outlets into an outlet mall, rather than having them be single store locations.

Mall Rent Rates

The cost to rent a space in a mall varies depending on your location, whether you are renting a normal storefront or an anchor, and the mall type. Rates are usually charged by the square foot and range from $5 a square foot in a strip mall to $40 a square foot in a high-end mall.

Enhancements and Improvement Costs

Parking Garage

Given the amount of parking that a mall needs, a parking garage can be a good addition. Parking garages fit more cars, which fits your mall or shopping center into a smaller footprint. The average cost to build a parking garage is $9,750,000.

Demolition

There are times when you have an existing building on the land you plan to build on. This may be an older mall, a group of stores, or office buildings. If this is the case, you need to add demolition costs to your project. Demolition costs $4 to $15 a square foot, depending on the building location and materials you are demoing.