Which shopping centers typically have high occupancy costs?

Enclosed shopping malls typically have high occupancy costs due to a variety of factors. These centers often have a mix of well-known national retail brands that command higher rental rates because of their strong consumer draw and brand recognition. The presence of multiple retailers in one enclosed space creates increased foot traffic, which allows landlords to charge premium rents.

Additionally, enclosed malls usually offer amenities such as climate control, security, and maintenance services, all of which contribute to the overall operational costs that are passed on to retailers in the form of higher occupancy expenses.

In comparison, other shopping center types, such as outlet centers, lifestyle centers, and mixed-use developments, generally have different structures and tenant mixes that can lead to lower occupancy costs due to factors like lower brand prestige or variable tenancy models that might not support the same high rental prices.