Community Shopping Centers – Description and Financing

Community shopping centers generally have less than 200,000 square feet in gross leasable area. They may be designed as enclosed or open-air malls or as strip centers. The centers are organized around one or more of the major national or regional retailers, one or two “junior” department stores, or a store owned by a company specializing in smaller department store operations. A junior department store will generally have between 30,000 and 50,000 square feet and feature a full line of soft goods (clothing, books, and so on) and often some hard goods (appliances, furniture, and so on).

In the 1980s, major national and regional discount department stores emerged as new, significant anchors for community shopping centers. Retailers such as K-Mart (of the S.S. Kresge Corporation) and Wal-Mart became the dominant force in retail sales growth in the United States in the late 1980s. These stores, usually between 75,000 and 125,000 square feet, compete for discount shoppers with merchandise priced below that of the traditional department store. These super-discounters have become the most popular anchors in many new community strip centers because of their heavy advertising, low prices, and excellent locations, which generate shopping traffic.
Community shopping centers generally require trade areas with populations of 100,000 or more. However, these centers are often located in smaller towns that serve as a shopping area for a larger, multi-community area. Besides the anchor stores, the 10 tenants most likely to appear in these centers are:
women’s ready-to-wear shops

restaurants (with liquor service)

fast food/carryout restaurants

beauty salons

family shoe shops

jewelry shops

card and gift shops

restaurants (without liquor service)

women’s specialty clothing shops


In strip centers, the anchor usually has a central location; if there are several anchors, they are separated. It is important to remember that because of the
weather-exposed design of strip centers, shoppers generally walk for shorter distances between stores to shop than is the case in an enclosed mall area. Rents in strip centers will generally run 40 percent to 60 percent less than those found in similar retail areas in enclosed malls. As a rule, sales per square foot will be correspondingly lower than sales in enclosed malls.

Like major department stores, food stores are destination stores. The other tenants depend to some extent on the occasional or impulse sales afforded by a good location in the pedestrian traffic pattern between the larger stores. Like the anchors in large super-regional malls, destination stores in community shopping centers often pay rents that cover only the costs to the center’s owner; the more specialized retailers pay rents that represent true profit potential.

Grand Cayman Islands to Take a Hit from Tropical Storm Gamma

The Grand Cayman Islands generally known for their offshore banking accounts is going to take yet another hit this record breaking 2005 Tropical Hurricane Season. This time from late season Greek Alphabet Tropical Storm Gamma, which is quite a large system and growing. It may even reach Hurricane Status. But whether that happens or not is immaterial as it is moving very slowing at about 5 miles per hour, with sustained winds of 50 miles per hour.

The Grand Cayman Islands will be in Tropical Storm or Hurricane Gamma Wake for at least 5 days and she is expected to take on 18-22 inches of rain. One has to wonder if the Island itself will not wash away with all the rain they have gotten this season. Consider also what about all that offshore money? Is your money safe in the Grand Cayman offshore account or will it be soggy if you withdraw it? If the Island washes away, what about all your money, will it too be drown?

The Grand Cayman bankers tell us that our money is safe there and not to worry, yet one has to wonder if they lose that little ledger with al those numbered accounts, if they will lose any record of your deposit? Meanwhile Mother Nature is planning on making a little deposit of her own in the form of torrential rains and massive flooding and potentially more Hurricane force winds? Something to think about, as your hard earned money becomes watered down and then blows away? Think on it.

Here’s How Factoring is Better than a Loan or Line of Credit

When business owners realize they have a cash flow problem and start looking for
ways to solve it, the first thing they usually do is call their banker or the SBA.

The second thing they do is discover all the financial and credit information they will
have to provide and how many weeks or months it will take to find out if they are

Bankers decide what a business qualifies for by the value of the assets they own and
can use as collateral. Many businesses don’t have many assets, therefore the loan or
line of credit they qualify for is not what they need. Even a business with many
assets often can not borrow as much as they need to keep everything running
smoothly on a continual basis.

Funds available through factoring are actually unlimited, in the sense that they are
based on how much business you do and how much you can do in the future. The
assets you use as collateral are the accounts receivable you generate for goods or
services you have already delivered. That means the amount you can get each
month depends on the amount of work you delivered the previous month.

In order to qualify for a bank loan, you have to be in business long enough to
establish good credit and show financial statements that will allow the banker to
feel that you can repay the loan out of your company profits.

If you haven’t been in business very long, are in Chapter 11 or have tax liens, you
wouldn’t be approved for a bank loan but you would probably qualify for factoring,
if your customers are credit worthy. The most important thing a factor considers is
the financial strength of your customers.

Factors need basic financial information about you and your company. Once the
factors see your A/R aging report and get the names, addresses and phone numbers
of your customers, they do credit checks and make the decision based on that
information. They will verify that the goods or services that you invoiced were
actually delivered and accepted by your customer.

The factor advances you 70%-90% of the invoice and then waits for your customer
to pay. When the bill is paid, you’ll get the rest of the money except for the small
fee (2%-5%) the factor charges for this service.

There are many ways you’ll make up the cost of factoring. By having your money in
your own bank account almost as soon as you send the invoice, you could save
more than the amount of the fee with discounts from your suppliers. When you pay
on delivery, you also make your suppliers happy and get better service from them.

You’ll gain more than that by being able to go after and accept more jobs. If you
know that you will be paid when you send each invoice, you will feel confident when
large orders or new customers come in and won’t have to hesitate, wondering if you
should accept them.