Sell for More Trivia is a weekly blog series that playfully presents a trivia question about commercial real estate.
Unlike food courts made up of fast food chains, food halls typically mix local artisan restaurants, butcher shops and other food-oriented boutiques under one roof.
Their ability to draw crowds is particularly appealing to landlords battling the growth of e-commerce and changing shopping habits.
Food halls are a place where there’s life and there’s a buzz. It’s a social environment. People want to be there.
Food halls have been around for years, especially in Europe. But the concept is becoming increasingly popular in the US as consumers demand healthier and better-tasting fast casual food options in entertaining environments.
Food halls are not just for retail outlets, expect to see smaller versions on the ground floor of large apartment and office towers.
Food halls are still so new that they lack a standard template for success. The spaces range from 5,000 SF to 40,000 SF. Property owners can choose to lease directly to food providers directly or lease to one operator and let it find tenants and run the place.
Developers of large, full-blown food halls can expect to spend at least $200 a square foot to provide expensive infrastructure like venting for open-flame cooking. Alternatively, developers can seek vendors that prepare food off site to simplify operations and minimize costs. Smaller food halls with seven to 10 vendors are popping up with more regularity, too.
Most food halls are focused on bringing in local chefs and incorporating a bar into the mix. And if the bar has outdoor seating and can provide nighttime entertainment, all the better.
Food halls are even beginning to migrate to the suburbs. And they’ll eventually get to malls too. My wife and I were just talking about how nice it would be to have a food hall near our home. I’m sure it’s only a matter of time.
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About Beau Beach, CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Prowess IRES which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or Beau@ProwessIRES.com