IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v9n11994p99-110.html
   My bibliography  Save this article

The Effect of Anchor Tenant Loss on Shopping Center Rents

Author

Abstract

This paper examines the effect that the loss of a shopping center anchor tenant has on the rental rates of the remaining tenants. Using data from smaller and moderately sized centers located in Florida and Georgia, two alternative regression procedures are employed and the results compared. Both estimates suggest similar and substantial effects to the rental rates. The rental rates of non-anchor tenants are estimated to decline approximately 25% in response to the loss of an anchor tenant.

Suggested Citation

  • Dean H. Gatzlaff & G. Stacy Sirmans & Barry A. Diskin, 1994. "The Effect of Anchor Tenant Loss on Shopping Center Rents," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 99-110.
    • Handle: RePEc:jre:issued:v:9:n:1:1994:p:99-110
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol09n01/v09p099.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kim, E. Han & Lewellen, Wilbur G. & McConnell, John J., 1978. "Sale-and-Leaseback Agreements and Enterprise Valuation," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 13(5), pages 871-883, December.
    2. Kennedy, Peter E, 1981. "Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations [The Interpretation of Dummy Variables in Semilogarithmic Equations]," American Economic Review, American Economic Association, vol. 71(4), pages 801-801, September.
    3. Schall, Lawrence D, 1974. "The Lease-or-Buy and Asset Acquisition Decisions," Journal of Finance, American Finance Association, vol. 29(4), pages 1203-1214, September.
    4. Eaton, B Curtis & Lipsey, Richard G, 1982. "An Economic Theory of Central Places," Economic Journal, Royal Economic Society, vol. 92(365), pages 56-72, March.
    5. Benjamin, John D. & Boyle, Glenn W. & Sirmans, C. F., 1992. "Price discrimination in shopping center leases," Journal of Urban Economics, Elsevier, vol. 32(3), pages 299-317, November.
    6. Gordon, Myron J, 1974. "A General Solution to the Buy or Lease Decision: A Pedagogical Note," Journal of Finance, American Finance Association, vol. 29(1), pages 245-250, March.
    7. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    8. Johnson, Robert W & Lewellen, Wilbur G, 1972. "Analysis of the Lease-or-Buy Decision," Journal of Finance, American Finance Association, vol. 27(4), pages 815-823, September.
    9. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    10. West, Douglas S & Von Hohenbalken, Balder & Kroner, Kenneth, 1985. "Tests of Intraurban Central Place Theories," Economic Journal, Royal Economic Society, vol. 95(377), pages 101-117, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francois Des Rosiers & Marius Theriault & Laurent Menetrier, 2005. "Spatial Versus Non-Spatial Determinants of Shopping Center Rents: Modeling Location and Neighborhood-Related Factors," Journal of Real Estate Research, American Real Estate Society, vol. 27(3), pages 293-320.
    2. William G. Hardin III & Marvin L. Wolverton & Jon Carr, 2002. "An Empirical Analysis of Community Center Rents," Journal of Real Estate Research, American Real Estate Society, vol. 23(1/2), pages 163-178.
    3. Jonathan Wiley & Douglas Walker, 2011. "Casino Revenues and Retail Property Values: The Detroit Case," The Journal of Real Estate Finance and Economics, Springer, vol. 42(1), pages 99-114, January.
    4. Wei, Sheng & Huo, Hong & Xu, Ming & Kadirov, Djavlonbek & Fam, Kim-Shyan, 2021. "Shop-hop till you drop! The effect of the image gap on spillover patronage within retail agglomerations," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    5. Ming-Long Lee & R. Kelley Pace, 2005. "Spatial Distribution of Retail Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 53-69, August.
    6. Aika Monden & Katsuyoshi Takashima & Yusuke Zennyo, 2021. "Revenue‐Sharing Contracts under Demand Uncertainty in Shopping Center," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(2), pages 556-573, June.
    7. Joseph Williams, 2014. "Percentage Rents with Agency," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 42(4), pages 791-828, December.
    8. Pistor Katharina, 2012. "Governing Interdependent Financial Systems: Lessons from the Vienna Initiative," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-25, January.
    9. John Clapp & Katsiaryna Bardos & Tingyu Zhou, 2014. "Expansions and Contractions of Major US Shopping Centers," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 16-56, January.
    10. Nilsson, Magnus & Schubert, Torben & Miörner, Johan, 2023. "The Productivity Effects of Regional Anchors on Local Firms in Swedish Regions between 2007 and 2019 – Evidence from an Expert-informed Machine-Learning Approach," Papers in Innovation Studies 2023/8, Lund University, CIRCLE - Centre for Innovation Research.
    11. Francois Des Rosiers & Marius Theriault & Catherine Lavoie, 2009. "Retail Concentration and Shopping Center Rents - A Comparison of Two Cities," Journal of Real Estate Research, American Real Estate Society, vol. 31(2), pages 165-208.
    12. Liu, Xuan & Tong, De & Huang, Jiangming & Zheng, Wenfeng & Kong, Minghui & Zhou, Guohui, 2022. "What matters in the e-commerce era? Modelling and mapping shop rents in Guangzhou, China," Land Use Policy, Elsevier, vol. 123(C).
    13. William G. Hardin III & Marvin L. Wolverton, 2000. "Micro-Market Determinants of Neighborhood Center Rental Rate," Journal of Real Estate Research, American Real Estate Society, vol. 20(3), pages 299-322.
    14. Rasouli, Soora & Timmermans, Harry, 2013. "Assessment of model uncertainty in destinations and travel forecasts of models of complex spatial shopping behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 139-146.
    15. Eckert, Andrew & He, Zhen & West, Douglas S., 2015. "An empirical analysis of tenant location patterns near department stores in planned regional shopping centers," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 61-70.
    16. Charles C. Carter & Kerry D. Vandell, 2005. "Store Location in Shopping Centers: Theory & Estimates," Journal of Real Estate Research, American Real Estate Society, vol. 27(3), pages 237-266.
    17. Peter F. Cowell & Henry J. Munneke, 1998. "Percentage Leases and the Advantages of Regional Malls," Journal of Real Estate Research, American Real Estate Society, vol. 15(3), pages 239-252.
    18. Wieland, Thomas, 2014. "Räumliches Einkaufsverhalten und Standortpolitik im Einzelhandel unter Berücksichtigung von Agglomerationseffekten: Theoretische Erklärungsansätze, modellanalytische Zugänge und eine empirisch-ökonome," MPRA Paper 77163, University Library of Munich, Germany.
    19. Song Zhang & Mark Duijn & Arno J. Vlist, 2023. "Tenant Mix and Retail Rents in High Street Shopping Districts," The Journal of Real Estate Finance and Economics, Springer, vol. 67(1), pages 72-107, July.
    20. Brooks, Leah & Strange, William C., 2011. "The micro-empirics of collective action: The case of business improvement districts," Journal of Public Economics, Elsevier, vol. 95(11), pages 1358-1372.
    21. William G. Hardin III & Jon Carr, 2006. "Disaggregating Neighborhood and Community Center Property Types," Journal of Real Estate Research, American Real Estate Society, vol. 28(2), pages 167-192.
    22. Tony Shun-TeYuo & Colin Lizieri & Phillip McCann & Neil Crosby, 2011. "Rental Values in UK Shopping Malls," Urban Studies, Urban Studies Journal Limited, vol. 48(8), pages 1667-1679, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark J. Eppli & John D. Benjamin, 1994. "The Evolution of Shopping Center Research: A Review and Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 5-32.
    2. Anastasia Klimova & Adrian D. Lee, 2014. "Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney," The Economic Record, The Economic Society of Australia, vol. 90, pages 16-40, June.
    3. Eckert, Andrew & He, Zhen & West, Douglas S., 2015. "An empirical analysis of tenant location patterns near department stores in planned regional shopping centers," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 61-70.
    4. Eckert, Andrew & He, Zhen & West, Douglas S., 2013. "An empirical examination of clustering and dispersion within Canadian shopping centers," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 625-633.
    5. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
    6. Gunasekera, Kumudu & Anderson, William & Lakshmanan, T.R., 2008. "Highway-Induced Development: Evidence from Sri Lanka," World Development, Elsevier, vol. 36(11), pages 2371-2389, November.
    7. Tigran Melkonyan & Zvi Safra & Sinong Ma, 2021. "Justice in an uncertain world: Evidence on donations to cancer research," Journal of Risk and Uncertainty, Springer, vol. 62(3), pages 281-311, June.
    8. Winkelmann Rainer, 2001. "Zur korrekten Interpretation der Ergebnisse einer log-linearen Regression bei Heteroskedastie. Eine methodische Untersuchung mit einer Anwendung auf die relativen Löhne von Ausländern / Correctly Inte," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 221(4), pages 418-431, August.
    9. Handa, Sudhanshu & Simler, Kenneth R. & Harrower, Sarah, 2004. "Human capital, household welfare, and children's schooling in Mozambique:," Research reports 134, International Food Policy Research Institute (IFPRI).
    10. Lorraine Ivancic & Kevin J. Fox, 2013. "Understanding Price Variation Across Stores and Supermarket Chains: Some Implications for CPI Aggregation Methods," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(4), pages 629-647, December.
    11. Ekström, Erika, 1998. "Income Distribution and Labour Market Discrimination: A Case Study of Namibia," Working Paper Series 502, Research Institute of Industrial Economics.
    12. Stephen Billings & Thomas Thibodeau, 2011. "Intrametropolitan Decentralization: Is Government Structure Capitalized in Residential Property Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 42(4), pages 416-450, May.
    13. Nick Drydakis, 2008. "Integrated Roma Earnings: A Multivariate Analysis for the Discrimination Hypothesis in Greece," Working Papers 0829, University of Crete, Department of Economics.
    14. Stellner, Christoph & Klein, Christian & Zwergel, Bernhard, 2015. "Corporate social responsibility and Eurozone corporate bonds: The moderating role of country sustainability," Journal of Banking & Finance, Elsevier, vol. 59(C), pages 538-549.
    15. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    16. Wesley Nimon & John Beghin, 1999. "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 801-811.
    17. Mao, Luke Lunhua & Zhang, James J. & Connaughton, Daniel P., 2015. "Sports gambling as consumption: Evidence from demand for sports lottery," Sport Management Review, Elsevier, vol. 18(3), pages 436-447.
    18. Ahlfeldt, Gabriel M. & Wendlan, Nicolai, 2008. "Spatial Determinants of CBD Emergence: A Micro-level Case Study on Berlin∗," MPRA Paper 11572, University Library of Munich, Germany.
    19. Evangelista, Rui & Ramalho, Esmeralda A. & Andrade e Silva, João, 2020. "On the use of hedonic regression models to measure the effect of energy efficiency on residential property transaction prices: Evidence for Portugal and selected data issues," Energy Economics, Elsevier, vol. 86(C).
    20. Alison Preston, 1997. "Where Are We Now With Human Capital Theory in Australia?," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 51-78, March.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:9:n:1:1994:p:99-110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JRER Graduate Assistant/Webmaster (email available below). General contact details of provider: http://www.aresnet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.