PA110057.JPG

3 Types of Property Obsolescence

When referring to commercial real estate, obsolescence is defined as any reason for a decrease in property value. There are three primary types of obsolescence that may affect the value of a commercial property. They are: PHYSICAL DETERIORATION…
Picture 034 NW View.jpg

The Shopping Center Chronicles – Spatial Autocorrelation in Shopping Centers

Real estate researchers often study the concept of spatial autocorrelation primarily for the statistical improvements in modeling. This same concept applies to shopping malls and improving their overall layouts. Spatial autocorrelation is…
IMGP3782.JPG

The Shopping Center Chronicles – Store Location

The way stores positioned themselves with respect to one another and their location within different areas of the mall are both key factors in one of the great sciences of shopping centers: spatial correlation. The idea is that individual…
IMGP0591.JPG

The Shopping Center Chronicles – Agency Theory

Application of agency theory to shopping centers is a matter of extending earlier works of what was called "common agency" to the shopping center scenario.With common agency, tenants with inter-dependent interests coordinate behaviors through…
IMGP1514.JPG

The Shopping Center Chronicles – Space Allocation

Like the other rent factors detailed in our previous installment of the Shopping Mall Chronicles, space allocation also plays a significant role in the rent tenants play. In 1993, J.K. Brueckner provided a comprehensive theoretical analysis…