How Much Do Mall Owners Make?
Try to guess which of the two businesses—managing a store in a shopping mall or the parking lot—would be the more lucrative option. – NEW DELHI: Try to guess whether company, operating a store in a shopping mall or managing the parking lot, is the most lucrative option.
You could place your bets on the former, but the parking attendants aren’t too upset about it. Even without making a single purchase, shopping centers in and around Delhi bring in a healthy income. The minuscule amount paid each month as parking fee at shopping malls adds up to a respectable sum of Rs 15 crore annually.
While some of the shops in the mall may be dissatisfied with the number of customers who actually make purchases, the proprietors of those shops appear to be very content. Any car or a bike driving in converts into a parking cost. According to Paramjeet Singh, the operations manager for Delhi-NCR (National Capital Region) of InterPark ICS, the average amount of revenue generated by parking services at a single shopping mall is between 1.2 and 1.4 crore rupees per year.
- In the city of Gurgaon, the parking operations of the Sahara, MGF, and DLF malls are managed by an organization called ICS.
- The yearly turnover from parking services in the Delhi-National Capital Region is a cool Rs 15 crore.
- This is due to the fact that there are already at least 12 malls operating in the region.
Parking fees bring in an annual revenue of around Rs 72 lakh for nearly every shopping center. According to Mr. Singh, the amount of income earned is dependent not only on the size of the mall but also on its location. Ansal Plaza, which is located in Delhi, is now at the top of the list with a revenue of more than Rs 90 lakh, but the City Centre, which is located in Gurgaon, is the parking lot that reigns supreme with a yearly parking turnover of more than Rs 150 lakh.
- According to Ram Pal, manager of parking operations at Ansal Plazas, the shopping center’s average daily collection is about Rs 25,000.
- Weekends and other important events bring significantly higher prices.
- Following closely by is the Noidas Centre Stage Mall.
- The amount of money collected from parking is Rs 20,000 per day, which amounts to around Rs 73 lakh per year.
When compared to those of the Delhi malls, the total parking money collected by the Gurgaon malls is significantly higher. While the total income generated by the four malls in Delhi is between Rs 2 crore to Rs 3 crore, the same number of malls in Gurgaon produce almost Rs 6 crore each year.
- This may be a reflection of the fact that the mall culture is expanding at a much higher rate in Gurgaon.
- There are primarily two income models that function behind the scenes of the parking services industry.
- These models are known as contract and non-contract basis.
- When asked about it, Arun Ghosh, who is in charge of operations at Sahara Mall, responded as follows: The provision of parking services at Gurgaon’s shopping malls is handled on a contractual basis.
Only Ansal Plaza in Delhi operates on a contract-based model. Either the contractor and the mall owners enter into a revenue sharing agreement as the basis for a contract, or the contractor pays a single payment to the mall owners and the full money is turned over to the agency that is in charge of the contract.
According to Mr. Singh, the revenue share of mall owners can range anywhere from fifty percent to seventy percent, and this amount constitutes a profit because the contractor is the one who is responsible for bearing all of the expenditures. The alternative model operates on a premise that does not include contracts.
The mall’s owners keep the entirety of the income generated by the parking services, and our wages are paid out of that revenue. According to a parking manager at East Delhi Mall, sometimes we are also granted a portion in the money depending upon yearly performance.
- This is something that happens on occasion.
- The same may be said for the Noida Center Stage shopping mall.
- Parking fees might vary widely around the Delhi-National Capital Region.
- On weekdays, the cost to park a vehicle in Gurgaon is Rs 10 for a two-wheeler, Rs 15 for a four-wheeler, and Rs 20 on weekends.
On the other hand, there is a dramatic contrast in Delhi. When compared to those in EDM, the prices at Ansal Plaza are significantly higher. The parking fees at Ansal Plaza are 10 rupees for two-wheelers and 20 rupees for four-wheelers, whilst the parking rates at EDMs are 5 rupees for two-wheelers and 10 rupees for four-wheelers.
How much money does it take to build a shopping mall?
Cost Estimates for Mall Construction It doesn’t matter what kind of mall you develop; there are a lot of different factors to consider. Each project is one of a kind, from the experts and materials used to the many kinds of signs and accessories that the shopping center requires.
The structure may be simplified by dividing it up into their respective categories. For instance, the cost of the physical structure itself is just one component of the overall cost; the statistics also include endless finishing expenditures, soft costs, and the fees charged by the contractors. It is feasible to break out some of the more frequent expenditures in order to identify where your money is going through the project, despite the fact that every project is unique in its own way.
The overall breakdown of the construction for an ordinary shopping mall project may be broken down into four sections. Your overall cost can increase due to additional expenses for the architect and the builder.
| Category | Average Percentage of Costs |
|---|---|
| Equipment Fees | 8% |
| Builder Fees | 14% (Plus an additional 14% – 15% extra) |
| Architect Fees | 17% (In addition to costs) |
| Outfitting and Finishing Costs | 38% |
| Material Costs | 40% |
In addition to the detailed breakdown of your overall costs, you will probably be working with a large number of specialists. The majority of these specialists are employed by your general contractor; however, you have the option of hiring them on your own independently and potentially cutting prices.
| Professional | Average Labor Costs per Hour |
|---|---|
| Painters | $40 – $60 |
| Electricians | $40 – $120 |
| Excavators | $60 – $80 |
| Masons | $60 – $80 |
| Carpenters | $60 – $100 |
| Plumbers | $75 – $130 |
| Structural Engineers | $100 – $500 |
The construction of the shopping center is simply one portion of the total expenditures. The expenditures associated with completing or furnishing the space can have a substantial bearing on the overall cost. The displays, fixtures, and signage that are picked for the businesses and anchors located within the mall are examples of some of the items that have the most leeway for variation.
| Outfitting Category | Average Costs per Sq.Ft. |
|---|---|
| Ceiling | $1 – $2 |
| Indoor Signage | $1 – $2 |
| Outdoor Signage | $1.50 – $3 |
| Flooring | $3 – $5 |
| HVAC | $3 – $5 |
| Lighting | $4 – $5 |
| Roofing | $4 – $6 |
| Displays and Fixtures | $8 – $12 |
Who owns most of the malls?
Simon Property Group, Inc. is a publicly traded real estate investment trust based in the United States. The company invests in retail properties such as shopping malls, outlet stores, and community and lifestyle centers. Its headquarters are located in Indianapolis, Indiana, and it is the company that owns the most retail malls in the whole United States.
Can I invest in malls?
2. Return on Investment – Everyone wants to make the greatest investment they can in Pakistan and have it bring them a significant return. Particularly during the process of investment in a shopping center Even if it’s possible that the initial investment will be higher than in other business areas, the return on investment will be higher in the long run.
What is an anchor in a mall?
What Is an Anchor Store? – The large department store in the shopping center is an example of an anchor store. There are often more than one and at least two, with one located at each end of the property, but this number might vary depending on the size of the shopping mall.
Anchor shops are stores that play an important role in the success of a shopping mall by virtue of their high advertising budgets and extensive selections of popular goods. These customers frequently spend money not just at the “anchors,” but also at the “smaller stores” located all around them. Anchor stores are often huge, well-known chain businesses like Macy’s, Nordstrom, Von Maur, JCPenney, and Lord & Taylor.
Other examples of anchor stores are Dillard’s and Sears.
How do malls make money?
They generate revenue through interest and marketing fees, as well as through revenue sharing. In the second scenario, the mall produces money through several means such as. costs for upkeep result in cost savings for them. Costs associated with marketing Rent on activities. Since rent and other payments are sent directly to individual owners, this sum is not considered part of their income.
What are some of the operating expenses of a mall?
Rent, utilities, and any other fees that the mall management would levy for things like advertising, security, or other services would be considered part of a mall’s operational expenditures. Customer traffic and having to deal with just one landlord for everything are two potential benefits of leasing space in a mall as opposed to an independent building.
How does the quality of a mall affect its revenue?
The better malls have a greater propensity to attract tenants of a higher grade, which can ultimately result in increased income for the mall (although, of course, it also costs more to develop a mall that is considered to be of “better quality”). In most cases, there is a ‘break point,’ which means that if the tenant’s yearly sales surpass a specific amount, the mall is entitled to more rent, calculated as a percentage of the tenant’s total sales.
How important is a shopping mall location for a business?
A presence in a shopping mall may often be beneficial to the promotion of your brand, as well as your online sales and the general market. It is possible that the markup is high enough for the businesses that you see to be earning at least a little profit, but you are not seeing the online sales that these stores are gaining as a result of customers visiting the store and being familiar with the brand.