Why Strip Centers Outstrip The Competition

September 03, 2025

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Why Strip Centers Outstrip The Competition

After nearly three decades in brokerage, one asset keeps proving its durability: strip centers.

Strip Centers may not receive the same fanfare as single-tenant net leased, industrial, or multi-family properties, but the fundamentals are undeniable:

  • Diversified Income – Risk is spread across multiple tenants, not one lease. Turnover often leads to stronger operators and higher rents.

  • Replacement Costs – Rising costs of land, labor, and materials, along with increasingly difficult entitlements make new development tough to pencil. Existing centers with below-market rents present real upside.

  • Small Suites, Big Demand – 1,000 SF spaces lease quickly and house tenants in the fast-casual, health and wellness, boutique fitness, medical, and beauty categories.

  • Daily Needs + Internet Resistant – Vet visits, dental visits, hair and nails, etc. These are weekly routines and/or necessities and they can’t be done online.

  • Leasing Flexibility – A 1,200 SF vacancy can often be filled in 60–90 days. A vacant big box space? That can drag on for years and cost millions..

The public markets validate this thesis. Curbline Properties (NYSE: CURB) - the first REIT built entirely on strip centers reported 96% occupancy, NOI growth above 6%, and rental increases of 8.5% on renewals and 15% on new leases in Q2.

The best owners don’t just collect rent, they collect and leverage data. That’s how they stay ahead of lease rollovers, keep current with market rents, and stay apprised of tenant demand. It’s the same edge we’ve built into DealGround: giving brokers the data advantage to create opportunity instead of waiting for it.

Instant and reliable market data for brokers who want the same edge savvy owners use every day.

LFG!

DealGround