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Tenant Placement Strategies within Multi-Level Large-Scale Shopping Centers

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  • Tony Shun-Te Yuo
  • Colin Lizieri

Abstract

This paper argues that tenant placement strategies for large-scale multi-unit shopping centers differ depending on the number of floor levels. Two core strategies are identified: dispersion and departmentalization. There exists a trade-off between three income effects: basic footfall effects, spillover effects, and an effective floor area effect, which varies by the number of floor levels. Departmentalization is favored for centers with more than four floors. Greater spatial complexity also points to a higher degree of departmentalization. Optimal placement strategies are determined by the physical features of the center as a whole, and not by the features of individual levels.

Suggested Citation

  • Tony Shun-Te Yuo & Colin Lizieri, 2013. "Tenant Placement Strategies within Multi-Level Large-Scale Shopping Centers," Journal of Real Estate Research, Taylor & Francis Journals, vol. 35(1), pages 25-52, January.
    • Handle: RePEc:taf:rjerxx:v:35:y:2013:i:1:p:25-52
    DOI: 10.1080/10835547.2013.12091352
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    JEL classification:

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

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