Big buildings on small downtown lots often cannot meet zoning requirements for setbacks or parking. Seeking a variance or zoning change is costly and time-consuming. Site preparation is simpler. Downtown construction often involves demolition of existing structures, while preparing a suburban lot may mean little more than clearing trees. The chances are considerably higher downtown that a project will encounter environmental hazards, unstable ground conditions, deteriorated infrastructure, or other complications - often unforeseen.
Construction is simpler.
Suburban buildings can be bigger - and can more easily meet the standardized requirements of national merchandisers. The bigger a new building, the lower its square-foot costs for leasing. In smaller, downtown spaces, economies of scale are hard to obtain, and zoning may limit building heights. Also, corporate retailers tend to seek prototype rectangles with ample floor space. These are easier to provide on new, spacious suburban sites.