Are you in a "Drive To" or a "Drive Through" Center?

Retail real estate is generally split into two categories, either you have a business that attracts people, and serves as a destination.  These are often times boutique or specialty stores or shops such as a custom bike builder, a specialty masseuse etc.

Other businesses require being in close proximity to a retail center-point such as a Publix, Kroger, other major grocer, and rely on that connivence of being near that destination already.  These are traditionally Quick service restaurants, banks, retail medicine etc. 

You might ask yourself why would every business not want to be at the retail center-point near the grocery store or the major draw in the center?  Well, generally it comes down to price.  If your business does not rely on being near a center point, then oftentimes the additional cost of being in those centers does not result in additional meaningful revenue.

Where as if you are an Urgent Care operator lets say, and you determine that being in a free standing single tenant building will drive 2 additional patients a day to your establishment.  The national average insurance reimbursement for a patient is $120/visit.   At 2 extra patients a day that yields $240 additionally per day or $86,400 annually.  When we consider the business case involved it makes the decision regarding whether to choose an inline "ok" space or an outparcel "10/10 Wow" space fairly cut and dry.  Either the additional cost for the premium positioning is worth the additional revenue or it is not.  

 Generally the way to determine if you are at a "drive Through" or "drive To" location is the anchor tenant of the shopping center.  Again if this is a grocer or perhaps a Lowes, Home Depot, Target, etc, then the center is likely a "drive To" location.  However if the shopping center perhaps has a restaurant, a couple small suites, and perhaps there is some challenging access or a lack of a traffic light, then these are most likely going to be "drive Through" areas.