The Idea Behind All Those Auto Malls

Typically, an auto mall is a collection of individually owned dealerships that relocate next to each other on real estate specifically set up for selling cars. Often, they agree to adhere to certain design requirements and share marketing costs.

However, some auto malls are owned by single dealers. Roger Burdick recently built on in Syracuse, NY, consisting of 13 franchises on 92 acres.

Roger Penske and the United Auto Group have several in development, including locations in New Jersey, San Diego and Rhode Island.

UAG's North Scottsdale Automall outside Phoenix, AZ, is considered by many to be the premier dealership site in the country.

The thinking is that auto malls are good for consumers who get to shop for vehicles in one central location. They can be good for dealers because they often are in well-traveled and growing population centers.

There are approximately 200 auto malls currently in the U.S. with several more in development. The Staubach Group, alone, has 16 auto malls in different stages of development.