Virginia Beach, VA is a vibrant city located on the southeastern coast of the United States. With its beautiful beaches, thriving tourism industry, and diverse population, it offers a promising market for businesses. This article aims to provide insights into the prospects of starting a shopping centers business in Virginia Beach, including the required investment, potential returns, and suitable locations.
Population Distribution:
Virginia Beach has a population of over 450,000 residents, with a median age of 35. The city is known for its diverse demographics, attracting people from all walks of life. The population distribution shows a concentration of residents in various neighborhoods, including:
- Oceanfront: The Oceanfront area is a popular tourist destination, famous for its boardwalk and beach activities. It is home to a mix of permanent and seasonal residents, making it an ideal location for a shopping center targeting tourists and locals alike.
- Town Center: Located in the heart of Virginia Beach, the Town Center neighborhood is known for its highdensity residential and commercial buildings. It attracts young professionals and families, creating a strong consumer base for shopping centers in the area.
- Great Neck: Great Neck is an affluent residential area with a significant population of uppermiddleclass residents. The area is ideal for developing upscale shopping centers, catering to the higher disposable income of its residents.
Commercial Districts:
Virginia Beach offers several wellestablished commercial districts, making it an advantageous location for shopping centers. These districts not only attract local shoppers but also serve as a commercial hub for neighboring communities:
- Lynnhaven Mall: Lynnhaven Mall is the largest shopping center in Virginia Beach. With over 1 million square feet of retail space, it attracts shoppers from across the city and surrounding areas. Setting up a shopping center in close proximity to Lynnhaven Mall can leverage its existing foot traffic and consumer base.
- Pembroke Mall: Located in the Pembroke neighborhood, Pembroke Mall is another popular shopping destination. It serves as a retail hub, attracting shoppers from the surrounding residential areas. Opening a shopping center near Pembroke Mall can tap into this established consumer market.
Investment and Return:
Starting a shopping center business requires substantial capital investment. The cost depends on various factors, including location, size, and amenities offered. In Virginia Beach, the average cost of establishing a shopping center ranges from $1 million to $10 million, depending on the scale and complexity of the project.
Return on investment in the shopping centers industry can be promising. With strategic location selection, effective marketing strategies, and offering a diverse range of retailers, returns on investment can range from 8% to 12%. However, it’s essential to conduct a thorough market analysis and business plan to ensure profitability.
Suitable Locations:
In addition to the aforementioned commercial districts, various other locations in Virginia Beach hold potential for shopping centers:
- Red Mill Commons: Located in the southern part of the city, Red Mill Commons is a growing mixeduse development. Its proximity to residential neighborhoods and lower competition in the area make it an attractive location for a shopping center.
- Princess Anne Commons: As the city’s major growth corridor, Princess Anne Commons offers ample opportunities for commercial development. With its close proximity to residential areas and growing population, it presents a promising location for a shopping center.
- Hilltop: Hilltop is a wellestablished commercial area with a mix of retail and dining options. The area attracts both residents and tourists and can be an ideal location to set up a shopping center targeting a diverse consumer base.
Starting a shopping centers business in Virginia Beach, VA holds great potential. With its diverse population, thriving tourism industry, and wellestablished commercial districts, the city offers a favorable environment for entrepreneurs. Analyzing the population distribution, identifying suitable locations, and understanding the required investment and potential returns are critical steps to ensure the success of a shopping center venture in Virginia Beach.