In most Israeli residential neighborhoods you can find small commercial centers housing
small stores. These centers usually include a small grocery store. If you run out of milk
you can run out to the local store in your slippers and get what you need. Due to the
rise of large strip malls and shopping centers these small neighborhood centers were
on the decline. However, recently many construction companies who until now have
concentrated on residential buildings have discovered the potential of profit from these
small commercial centers.
In new neighborhoods under construction there are usually one or two empty plots that are
zoned for commercial use. These future stores can serve the hundreds or even thousands
of new apartment owners that will move into the area. Many people like the convenience
of having stores close by. It saves them time and gas money to shop there rather than drive
to the larger commercial centers. In addition to this, these small, local commercial centers
are very often the venue for doctors’ offices, post offices, pharmacies, banks and other
essentials.
Since the rent and maintenance fees are very often cheaper in these small centers than in
the larger ones, many small business owners prefer to open their businesses there as well.
All of the above merge together to make the investment in such a commercial center a very
lucrative one.
