Which tenants are a good fit for end cap space in commercial real estate?


As the most visible spot in your shopping center, the end cap is a prime space for recognizable, national brands that will draw in customers. However, many landlords are also willing to lease this marquee space to smaller businesses with strong track records.

Where is the end cap?

End caps are located at the far ends of the shopping center, on the corners of the building. End caps offer significant advantages over the in-line space found in the middle of the shopping center.

Why is the end cap space so attractive to tenants?

Shopping center owners can charge a higher lease rate for end caps—sometimes $5-15 more per square foot. Tenants are willing to pay the higher rent because of the many benefits the space offers, including the following:

  • Signage opportunities: Since end caps are located on the corner of the center, tenants can place signs on both the front and side of the building. 
  • Accessibility: Situated right where traffic flows in and out of the shopping center, end cap space offers maximum convenience for shoppers.
  • Parking: The number of parking spaces varies greatly among shopping plazas, but end caps typically have more abundant parking.
  • Drive-through windows: Depending on the specific design of the shopping center, the corner unit can often accommodate a drive-through window. This makes them highly attractive to restaurants, banks, pharmacies, dry cleaners, and other businesses that offer pickup services.

Outdoor space: Many end caps feature more outdoor space, which is ideal for restaurants with patios


Gary Stevens

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