Building a mall is a large and complex project that requires much planning and money. The cost of building a mall depends on its size, location, and design. A small mall can cost around $25 million, while very large luxury malls can cost over $1 billion. Developers must consider these factors to ensure that their investment pays off.
This guide covers the main cost factors of a mall-building project, such as land purchase, construction, and permits. It also includes how attributes such as parking, landscaping, and amenities contribute to the overall cost. Whether you are planning to invest or are just curious, you will find all the necessary answers in his guide concerning what it takes to have a mall built.
Shopping Mall Costs
| Cost Type | Estimated Cost |
| National Average Cost | $75 million |
| Average Range | $25 million – $180 million |
| Low-End | $2.5 million |
| High-End | $225 million |
Types of Shopping Mall Cost
The cost of building a mall varies quite much. Different types of shopping malls include strip malls, community malls, and even regional shopping malls, enclosed or open. Differences in size. Another cost driver is the presence of anchor stores. More features lead to more costs together with a larger parking area. The table lists the average costs for the different mall types depending on their typical areas and other features.
| Mall Type | Average Cost per Sq.Ft. (Labor Included) | Average Range (Labor Included) |
| Strip Mall | $200 – $300 | $1.75M – $3.5M |
| Neighborhood Shopping Center | $250 – $300 | $2.5M – $10M |
| Theme Mall | $250 – $300 | $2.5M – $20M |
| Community Shopping Center | $250 – $300 | $5M – $25M |
| Factory Outlet | $250 – $300 | $6M – $30M |
| Power Center | $250 – $300 | $10M – $35M |
| Lifestyle Shopping Center | $350 – $400 | $10M – $50M |
| Regional Mall | $300 – $400 | $35M – $150M |
| Super Regional Mall | $400 – $500 | $100M – $250M |
Build a Strip Mall
Building a Strip Mall Creating a strip mall will typically need an investment of between $1.75 million to $3.5 million depending on size and design. Generally, strip malls vary in size between 7,000 to about 20,000 square feet with about 3 to 12 stores.
The design is mostly simple with stores lined up in a straight line or U-shape. Some strip malls may include an anchor store to attract customers into the other business types. The cost per square foot for construction varies between $200-$300 depending on whether or not there will be anchor stores and complications of the designs.
Neighborhood Shopping Center
Usually, between $2.5 million-$10 million are typically spent on a neighborhood shopping center. It caters to the needs of the populace and normally has the supermarket being its dominating outlet. It has smaller shops, restaurants, and service facilities.
The cost is approximately $250-300 per square foot to build. Some of the newer centers are mostly open spaces, with outlets arranged in a circular or otherwise flexible arrangement.
Theme Mall
To build a theme mall would usually cost anywhere between $2.5 million-$20 million. This is a shopping center designed around a theme or concept, like, say, a holiday, cultural style, or any unique atmosphere.
Such malls are larger and grander than regular shopping centers with special decorations and experiences to entice visitors. The costs to build usually range about $250-$300 per square foot, usually depending on size and the theme.
Community Shopping Center
A community shopping center typically costs between $5 million and $25 million to build. These neighborhoods are intended for a community, a few but not all available shopping, and service businesses plus an eatery from time to time.
Very likely, it will include a grocery store or another anchor essential to the local market. The cost of developing one would be approximately $250 to $300 per square foot.
Lifestyle Shopping Center
Lifestyle Shopping Centers can be built from $10 million to $50 million, and those centers provide upscale shopping with a great mix of high-end retailers, dining, and even entertainment. Costing about $350 to $400 per square foot, this also depends on the location, design, and features of the center.
Regional Mall
Regional malls typically cost more than $35 million to as much as $150 million, depending on size, location, and the anchor stores.
Typically built indoors, these malls feature 2 to 3 large anchor stores and at least one restaurant, often spanning up to two stories. The cost to build a mall ranges from $300 to $400 per square foot, with some newer malls adopting an open-air layout.
Super Regional Mall
Shopping mall space requirements differ according to the type of mall and the purposes for which it is intended. Broadly speaking, small malls like strip malls will need about 7,000 to 20,000 square feet, while a typical larger regional mall will range from about 200,000 to 1 million square feet.
Super regional malls much larger can go up to more than 2 million square feet. The space requirement will also depend on the number of anchor stores and parking as well as other amenities. Its strategic planning will ensure proper functioning concerning the traffic, maximization, and overall shopping experience.
Additional Considerations and Costs
When building a shopping mall, several additional factors affect both the cost and success of the project:
- Financing: Securing financing is common for large commercial projects like malls. Options such as bank loans and venture capital can help fund the construction process.
- Permits: Obtaining the necessary construction permits is crucial. These permits must be submitted before construction begins, and the costs are typically included in the contractor’s estimate.
- Demographics: Understanding your target customers—based on age, budget, and lifestyle—helps determine the mall’s design and scale. This analysis ensures the space meets the needs of potential shoppers.
- Design and Layout: The architectural design impacts mall performance, including store placement, foot traffic flow, space utilization, and sustainability. A well-planned layout enhances customer experience and maximizes sales.
- Amenities: Modern malls often include more than just stores. Entertainment, restaurants, and services are essential to attract and retain shoppers. The types of amenities should reflect your target demographic.
- Mixed Use: Incorporating flexible, temporary spaces into the mall allows it to adapt to changing trends without requiring constant renovations. Many malls leave open areas for this purpose to remain versatile.
Conclusion
Cost to Build a mall is usually expensive. It varies based on what kind it is, how big it is, and where it is located. Small malls such as strip malls would be cheaper, whereas larger malls, such as super-regional malls, are much more expensive.
Before building the mall, careful planning is required. The costs involve construction, permits, and design costs, but more importantly, it makes a difference to invest in high-quality features and know the target market quite well so that it can be successful and profitable.
