Appraisers have the unique ability to direct the market, though they do not typically combine their powers to do so. The fact is, in many ways the market really does rest in the hands of appraisers. The appraiser can render a property depressed, change the market in an entire city by his or her appraisal […]
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 – This type is just what it sounds like – deterioration to the physical structure itself. The […]
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 the patterning of mapped residuals (across space) resulting from regressions that involve different locations of observations. In the case of a housing price […]
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 stores in a mall act much like businesses within a mono-centric urban area. Regional and super-regional […]
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 a landlord or developer. The objectives are to internalize the demand externalities present in the mall and ensure the landlord […]
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 of the problem of optimal space allocation in shopping malls. His paper dealt with agency theory and principal-agent relations. […]
The Shopping Center Chronicles – Rent Factors of the Past & Present Over the years, some of the factors impacting rents at shopping centers have varied almost as much as the stores that occupy the spaces. Other variables have transcended the years and remain constants within the industry today. In this installment of The Shopping […]
Those in their fifties or older probably remember going downtown to shop, not just for big ticket items, but for everyday items people now get at big-box stores. Suburban shopping malls simply didn’t exist. During the 1950s and early 1960s, the concept of enclosed shopping malls caught on. From 1950 to 1982, shopping centers went […]
If the lease on your place of business is due to expire, now is a very good time to start addressing your company’s needs. As Orlando commercial real estate appraisers, much too often we see businesses that do not conduct the necessary research and then find themselves in a new place that is either too […]
Real estate matters in general can get very complicated if you don’t have experience in the industry. Getting the right commercial real estate appraisal can be a downright mess if you don’t take the correct measures to ensure you bring quality and value to your appraisal. Whether you are selling a property or you are […]
