Identifying the effect of tenant mix on rental price

Abstract

This study reviews the literature about the correlation between the rental price and tenant mix in the shopping center. Our research aims at determining which variables can describe the model of tenant mix impact on the rental cost. One of the aspects that influence the architectural experience for shopping center visitors is the tenant mix aspect. Shopping centers with an optimum tenant mix may enhance its shopping experience and its rental price. Previous studies on rental cost and tenant mix have only been carried out in the first world countries and western countries. Indonesia has never conducted this study, so there is yet a method to quantify rental prices based on the tenant mix level for Indonesian shopping centers. Results of this literature study found that tenant mix variables include the number of units, size of the shopping center, average unit area, number of categories, and number of brands. Thus the shopping center in Indonesia would have a quantification standard of rental prices in the tenant mix level. Shopping center manager and retail observer in Indonesia can apply this quantification method. In the future, researchers may develop this study; they may examine the regression calculation on the correlation between shopping center rental prices and tenant mix.