Volume
27,
Number 3, 2005 of the Journal of Real Estate Research
Spatial Versus Non-Spatial Determinants of Shopping Center Rents: Modeling
Location and Neighborhood-Related Factors
Professor Francois Des Rosiers
Urban and Real Estate Management
Business Administration
Laval University
Pav. Palasis-Prince, Ste-Foy,
Quebec, Canada G1K 7P4
E-mail:
francois.desrosiers@fsa.ulaval.ca |
Professor Marius Theriault
Director, Center for Research in Regional Planning and Development,
Laval University
E-mail: pkolbe@memphis.edu |
Laurent Menetrier
Laval University |
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Abstract: This study is
an attempt to model the economic trade-off between spatial and
non-spatial determinants of shopping center rents while assessing the
role of neighborhood and location attributes in the rent setting
process. For that purpose, two space-related indices, namely the
Economic Potential Index (EPI) and the Center Attraction Index (CAI),
are designed based on a major origin-destination phone survey and on financial
data obtained for eight major shopping centers in Quebec City, Canada.
The database, which is processed through a regional GIS, includes 1,007
retail units, representing some 4.4 million square feet of gross
leasable area. While findings confirm that the EPI act as a significant
determinant of shopping center rents, they also bring out the complexity
of the relationships between endogenous and exogenous rent determinants.
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