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End Cap

By on September 19, 2018

When a building is built in an elongated strip with a lot of unblocked frontage, the units on both ends are referred to as end caps.

This term is almost exclusively used for commercial and retail real estate where human traffic and exposure can make a significant difference to the success of the tenants occupying that space.

The term end cap originated from shelf space in major retailers where products are lined up at the end of the isle. This strategic placement is apparently desirable as it gets more exposure.

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This is understandable as it has a wider view available to consumers.

The types of business that might have a preference to end cap real estate are often restaurants, stores selling expendable products, and any big name companies that desire the extra exposure.

Drive through food and beverage companies will also find these shop locations able to cater to their operating needs.

Commercial tenants will not just get exposure from the from, but also from the side as well. This can be extremely valuable especially when windows are installed at the side. Allowing consumers to see what is going on inside.

On residential property, apartments located on the side will also be more valuable as it enables the occupant to have another view.

However, residential real estate is seldom described as end cap.



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