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Micro-Market Determinants of Neighborhood Center Rental Rates

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  • William Hardin III
  • Marvin Wolverton

Abstract

This investigation expands the limited empirical research on retail rental rates by investigating the determinants of neighborhood shopping center rents. Evidence supports primary trade area and property specific characteristics as the primary determinants of neighborhood center vacancy and rental rates. A positive aggregation effect created by higher order shopping opportunities is also found. Community centers and malls generate positive marginal effects on neighborhood center rental rates. However, the marginal effects diminish greatly after two-tenths mile for community centers and one-half mile for malls. Micro-market factors are important determinants of rental rates and by implication property performance.

Suggested Citation

  • William Hardin III & Marvin Wolverton, 2000. "Micro-Market Determinants of Neighborhood Center Rental Rates," Journal of Real Estate Research, Taylor & Francis Journals, vol. 20(3), pages 299-322, January.
    • Handle: RePEc:taf:rjerxx:v:20:y:2000:i:3:p:299-322
    DOI: 10.1080/10835547.2000.12091037
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    References listed on IDEAS

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    1. Edwin S. Mills, 1992. "Office Rent Determinants in the Chicago Area," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(2), pages 273-287, June.
    2. C.F. Sirmans & Krisandra A. Guidry, 1993. "The Determinants of Shopping Center Rents," Journal of Real Estate Research, American Real Estate Society, vol. 8(1), pages 107-116.
    3. Kenton L. Ownbey & Kyle Davis & Harvey H. Sundel, 1994. "The Effect of Location Variables on the Gross Rents of Neighborhood Shopping Centers," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 111-124.
    4. Mark J. Eppli & James D. Shilling, 1996. "How Critical is a Good Location to a Regional Shopping Center?," Wisconsin-Madison CULER working papers 96-03, University of Wisconsin Center for Urban Land Economic Research.
    5. 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.
    6. Mark J. Eppli & James D. Shilling, 1996. "How Critical Is a Good Location to a Regional Shopping Center?," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 459-468.
    7. 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.
    8. John D. Benjamin & Glenn W. Boyle & C. F. Sirmans, 1990. "Retail Leasing: The Determinants of Shopping Center Rents," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 18(3), pages 302-312, September.
    9. Eppli, Mark J & Shilling, James D & Vandell, Kerry D, 1998. "What Moves Retail Property Returns at the Metropolitan Level?," The Journal of Real Estate Finance and Economics, Springer, vol. 16(3), pages 317-342, May.
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    Cited by:

    1. William Hardin & Marvin Wolverton & Jon Carr, 2002. "An Empirical Analysis of Community Center Rents," Journal of Real Estate Research, Taylor & Francis Journals, vol. 23(1-2), pages 163-178, January.
    2. 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.
    3. Jaekyung Lee & Hyunwoo Kim & Hyungkyoo Kim, 2021. "Commercial Vacancy Prediction Using LSTM Neural Networks," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    4. 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.

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    JEL classification:

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

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