Wednesday, 17 June 2020


Chief Anayo Nwosu
Chief Anayo Nwosu

Does It Make Sense To Undertake Building Of Shopping Malls or Plaza At This Time? It is prudent not to take a bank loan to build or complete a Shopping Mall or Plaza outside an organised market at this time for the following reasons:

1. Sequel to poor sales and net income, many shops are no longer renewing their rents at the big shopping malls or plazas. Many have stylishly moved to locations on the busy streets where they can pay lower rents. Shops with spaces in front that can park 6 cars are a hot cake.

2. Recall that the amount you charge or will charge as rent in your mall is meant to repay your loan and return some value for your investment. This would be a pipe dream and messy if the target clients are running away from costs to where they can get cheaper alternatives.

3. The increasing shift of the market place to the internet and the successful sales performances of online businesses is making physical locations unattractive. Was it not on Facebook that I rented my house and sold two of my used cars? It works like magic.

4. Investment in warehouses to be used by online businesses seems more lucrative now but the warehouse must be easily accessible.

Instead of undertaking on giant shopping mall project with borrowed money with interest payment implications, why not go into DOWNSTREAM REAL ESTATE? That is my next topic if I get about 400 likes for this post.

Anayo Nwosu
Ikenga Ezenwegbu


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