Bakersfield, CA is a vibrant city located in the southern part of the San Joaquin Valley in California. With a population of over 380,000 residents, it offers a fertile ground for various businesses. One such industry with promising growth potential is the shopping center business. In this article, we will explore the prospects of starting a shopping center business in Bakersfield, CA, the initial investment required, the expected return on investment, and suggest suitable locations for opening a shopping center.
Population Distribution:
To assess the potential success of a shopping center business, understanding the population distribution is crucial. Bakersfield is characterized by a diverse mix of residents, with different socioeconomic backgrounds. The majority of residents live in the suburban areas, where families and young professionals seek convenience and access to retail and services. Understanding these demographics allows for strategic planning and targeting the right customers.
Residential and Commercial Areas:
Bakersfield is composed of various residential and commercial areas, each with its unique characteristics and customer preferences. Some notable residential neighborhoods in Bakersfield include Downtown, Olive Drive, Rosedale, and Southwest. These areas have a sizable population and offer potential customer bases for shopping centers.
Within these neighborhoods, several commercial areas serve as shopping destinations. For instance, the Valley Plaza Mall, located in the Southwest, is the largest shopping mall in Bakersfield and attracts a significant number of shoppers. Additionally, The Marketplace, a retail and entertainment complex, is situated in the Northwest and has become a popular destination for shoppers.
Investment and Return on Investment:
Starting a shopping center business requires a significant initial investment. The costs typically include land acquisition or lease, construction or renovation of the facility, infrastructure development, and marketing. The amount of investment varies based on the size and location of the shopping center. In Bakersfield, establishing a mediumsized shopping center can require an investment ranging from $10 to $30 million.
While the initial investment may seem high, the potential return on investment for a shopping center in Bakersfield is promising. With the city’s growing population and diverse consumer base, there is a steady demand for quality retail spaces. Additionally, the presence of established shopping destinations, such as Valley Plaza Mall and The Marketplace, demonstrates the market potential and the feasibility of a shopping center business in the area.
Ideal Shopping Center Locations:
Choosing the right location is crucial for the success of a shopping center business. Based on Bakersfield’s population distribution and existing commercial areas, several locations offer considerable potential for opening new shopping centers. These include:
- Downtown: With ongoing revitalization efforts and its central location, opening a shopping center in Downtown Bakersfield can attract both residents and tourists. The proximity to offices, government buildings, and residential areas make it an ideal destination for a convenient shopping experience.
- Southwest: The Southwest region of Bakersfield has experienced significant residential growth, making it an attractive location for a shopping center. With its proximity to California State University, Bakersfield, and residential neighborhoods, a shopping center in this area can serve both students and families.
- Rosedale: Located in the northwest, Rosedale is another area with potential for a shopping center. It is a popular residential neighborhood, and a welldesigned shopping center can capitalize on the shopping needs of its affluent residents.
Starting a shopping center business in Bakersfield, CA offers a promising opportunity for investment. With a diverse population, growing consumer demands, and proven success of existing shopping destinations, the market potential is significant. However, it is crucial to carefully consider the initial investment required, estimated return on investment, and select an appropriate location based on population distribution and existing commercial areas. By aligning with the community’s needs and preferences, a shopping center business in Bakersfield can thrive and contribute to the city’s overall economic growth.