Retail Real Estate Research Articles

The urban rent in the multicultural city: retail shops, migrants and urban decline in the historic centre of Palermo [La rendita urbana nella città multiculturale: attività commerciali, migranti e declino urbano nel centro storico di Palermo

Changes in consumer shopping behavior and in retail spaces, such as shopping malls, department stores and e-commerce, have modified localization models of traditional retail shops, also affecting urban fabric and spatial distribution of urban rent. Even city centers have undergone significant transformations or even decline, especially if local economic system and real estate market are weak and recessionary. A significant amount of commercial properties may have long vacancy due to excess supply, since many traditional shops close their business because they are no longer competitive and, moreover, there is no immediate takeover by new tenants. The decline of central urban areas depends on the interaction of multiple economic, social and cultural factors, but it can be countered by urban policies oriented not only to physical redevelopment of urban fabric, but also to social cohesion and multiculturalism. Migrants bearers of varied cultural values, coming from different continents and settling permanently in the Italian cities, have rented some of these empty properties by locating retail shops specifically oriented to their own communities or also to the citizens needs. The presence of migrants contributes, indeed, to support the retail real estate demand, to mitigate the minus-valorization of real estate capital and also to contain the revenues contraction. This phenomenon has been analyzed in some streets of the historic centre of Palermo that are traditionally shopping areas and have become the privileged place for locating retail shops managed by immigrants.

Türkiye’de Perakende Gayrimenkulleri ve Doğrudan Yabancı Yatırımlar: Stratejik Bir Keşfedici Analiz

As a key element of the commercial real estate world, retail real estate (i.e. shopping centers, retail parks and other retail, leisure and entertainment facilities) has commanded large investment volumes globally. Shopping centers have especially become an integral part of Turkey’s recent urban development. There was also a period of foreign interest in the Turkish market. Since these investments create large-scale, long-term and value-add ecosystems through professional business practices, attracting more foreign direct investment in this field would be advantageous. Yet, amid decreasing global appetite in the asset class and Turkey’s macro, industry-specific and urbanization-related challenges, a strategic approach is necessary to realize the country’s potential. In this respect, this study puts forward; (1) a new four-level pathway proposal (international, national, investment approach and project levels), (2) the related infrastructure (re-modeling the public-private cooperation, offering an online investor interface and creating a GIS-supported list of region-based investment opportunities) and (3) an overview of Turkish provinces. A new umbrella business association and efficient use of technology are also foreseen within this context. Literature review is used in this exploratory analysis.

How to Calculate the Share of a Land Plot in the Value of Office and Retail Real Estate: Regression Analysis to Increase the Cadastral Valuation Reliability

Purpose: In 2014 the Tax Code was updated. Currently, it also deals with the cadastral valuation of capital construction projects. However, there are problems associated with the cadastral valuation reliability. One of the key problems is how to evaluate a capital construction object and exclude the cost of the land plot. Design / Methodology / Approach: This study proposes an alternative approach to calculating the value of a land plot by analyzing the share of a land plot in the value of a single property. In the article, the authors consider that a land plot is included in the value of a single property due to a number of various pricing factors. The method of regression analysis was used as a methodological basis. Findings: Based on the results of the regression analysis, the authors gave recommendations on how to use the proposed factor models and made certain conclusions. Practical Implications: The results of this study can be used in cadastral valuation and in the process of challenging the cadastral value. Originality / Value: The presented study is an alternative way of calculating the value of land in a single property. It is useful since there is little information on how to apply the traditional methods of comparative sales.

The clue is the mix. Multifunctional re-uses in former retail real estate properties

In view of the increasing sales dynamics in online retail, city centres and retail properties are currently undergoing profound changes in their use. Stationary retail is reducing its demand for space, department stores are closing, shopping centres are losing their tenants – the functions within the city centres are being re-mixed. The retraction of retail stores from city centres offers the opportunity for other uses: living, offices, leisure and culture or hotels. Over the last 25 years, Germany has had extensive experience regarding the conversion of former department store properties. The buildings are being less frequently re-used as pure shopping destinations. Instead, hybrid, multifunctional re-uses are increasing, especially since 2015. Redevelopment for new uses is time-consuming and technically complex, but generally feasible in the existing buildings. It extends the period of use of the properties through sustainable re-use. The experience gained from the redevelopment of abandoned department stores in Germany can be of value to other countries that are confronted with department store closures (United Kingdom, Netherlands) and can even be used for the redevelopment of shopping malls.

Value-Drivers and Some Principal-Agent Conflicts in Commercial Real Estate Portfolios: A Company-Level and Market-Level Analysis

This article: i) explains some drivers of both business value and real estate value of commercial retail real estate portfolios; ii) illustrates some principal-agent problems that arise from investment and control of operating companies by hedge funds and private equity funds.

Ways to Improve the Safety of Built-Up and Adjacent Areas

This paper deals with the issues of technospheric and environmental impact on the environment by artificially created objects, in particular, shopping centers. Commercial real estate is one of the investment-attractive sectors of commercial real estate. The article presents the classification of retail real estate, especially the development of retail real estate and analysis of shopping centers within the city of Yekaterinburg. Environmental safety is paramount and substantiated within any real estate design, including the surrounding areas. The paper also discusses the threat from man-made accidents in built-up areas. The classification of types of accidents is given, their causes and subsequent consequences are analyzed. Possible methods of prevention of technosphere risks in built-up areas, as well as measures of various directions for the prevention of emergency situations are considered in the form of, highlighting the environmental issues in university programmes, and improving the safety management system.

Assessment of Demographic Impact on Female Psychographics

The mall culture that got established since 2011 onwards was something urban India had never witnessed earlier. Retail-real estate synergy had started addressing an uptrend in the metros from 2012 onwards. Even, the consumer perception towards a mall has changed drastically over the past decade; from just considering a mall as an entertainment option to a complete shopping zone. Also, realizing the psychologically involved nature of women in shopping in comparison to their male counterparts, the current study aims at examining the relationship between the demographic variables and psychographic purchase behaviour of females shopping women apparels and accessories in the stores in Delhi malls. This study is based on empirical research conducted through a mall intercept survey in 6 malls in Delhi chosen purposely. It followed multi-stage sampling with a sample size of 100x6=600 female shoppers. The findings of this study are consistent and have been supported by previous studies. It revealed that demographical factors have an impact on the buying pattern of the respondents. The conclusion advocates that there exists a significant relationship between the demographical factors and the psychographic purchase behavior of the female shoppers. However, the relationship between age and psychographic purchase did not reach the level of statistical significance yet, the purchase behaviour varied with age.

An investigation into the investment decision-making practices of South African institutional investors

PurposeThe South African listed property market has changed its legal basis from property loan stock companies and property unit trusts to adopt the more familiar international structure, real estate investment trusts. The main distinction is how shareholding is structured and investment returns are paid out to shareholders, which results in a different tax treatment. It is hoped that this change would attract more foreign investment, but it is questionable if this is sufficient to convince global investors who, amidst a seeming worsening of the stability in the political and economic environment, would probably need more insight into aspects such as investment decision making within these South African organisations. The paper aims to discuss these issues.Design/methodology/approachUsing a balanced scorecard (BSC) framework, this study investigates the relevance of investment decision-making frameworks in South Africa. A survey using a sample of institutional investors that are included in the South African Property Market Index was conducted.FindingsThe study found similarities in decision-making priorities of South African institutional investors to those of previous studies. With the focus on retail property, tenant mix and secondary to that, quality of the centre management team is found to be important for forecasting expected returns in a retail investment decision environment. Diversification strategies were found to have similar results to previous studies, leaning more towards geographic location than economic location. Further, the study suggested the use of a BSC framework, linking the financial information and different financial ratios to nonfinancial aspects that need specific consideration in a retail investment environment.Research limitations/implicationsRetail property is considered to be of particular concern due to the business enterprise value that could be created if superior management techniques are applied. The investment decision stage concerned with forecasting expected returns relies on financial and quantitative models such as those derived from Modern Portfolio Theory. In a shopping mall environment, however, future performance is driven by nonfinancial factors, for example, tenant mix and superior customer experience. Therefore, forecasting expected returns in a retail environment requires a nuanced approach relative to other commercial property sectors.Originality/valueThe paper is considered to be original in its analysis of the retail real estate market in South Africa. This offers new insight into retail properties specifically, but also how investors in South Africa react to decision-making practices. This adds value in the internationalisation of the property market and the consistency and transparent practices applied globally.

Understanding the contribution of curb appeal to retail real estate values

ABSTRACTThe concept of curb appeal and its impact on property values has been largely neglected in the real estate literature. In the context of retail real estate, curb appeal represents the general attractiveness of a store as viewed from the sidewalk or parking lot that is expected to affect consumer patronage decisions and consequently property values. We first develop a measurement instrument for curb appeal and assess its validity using exploratory and confirmatory factor analysis. Our results suggest that curb appeal is multidimensional and consists of an atmospheric, architectural and authenticity dimension. Then, we use survey responses, transaction data and spatial regression to quantify the impact of curb appeal on sales prices. We find that the atmospheric and architectural dimensions have a significantly positive impact on sales prices. We also show that curb appeal dimensions are highly correlated with observable building features traditionally included in hedonic pricing models.

상업용 부동산 시장의 분산투자에 관한 연구 - 서울지역의 오피스 빌딩 및 소매용 부동산 시장을 중심으로 -

상업용 부동산 시장의 분산투자에 관한 연구 - 서울지역의 오피스 빌딩 및 소매용 부동산 시장을 중심으로 -

Impact of electronic road pricing on real estate prices in Singapore

Since 1998, Singapore has had an Electronic Road Pricing (ERP) system set up with a network of toll gantries to tax vehicles entering designated areas in the city center during peak hours. Using the congestion rate hike with effect from November 1, 2010 as an exogenous shock, we test the effects of the ERP rate hike on retail, office and residential real estate prices. The results show that the November 2010 congestion toll rate increases cause a 19% drop in retail real estate prices within the cordon ERP areas relative to retail real estate prices outside the cordon ERP areas. The results are statistically and economically significant. However, the toll rate hike has no significant impact private office and residential real estate within cordoned ERP areas. The robustness and falsification tests could not reject the negative effects associated with the toll rate hike on retail real estate prices.

Congestion Externalities: Impact of Electronic Road Pricing (ERP) Charges on Real Estate Prices in Singapore

Since 1998, Singapore has had an Electronic Road Pricing (ERP) system set up with a network of toll gantries to tax vehicles entering designated areas in the city center during peak hours. Using the congestion rate hike with effect from November 1, 2010 as an exogenous shock, we test the effects of the ERP rate hike on retail, office and residential real estate prices. The results show that the November 2010 congestion toll rate increases cause a 19% drop in retail real estate prices within the cordon ERP areas relative to retail real estate prices outside the cordon ERP areas. The results are statistically and economically significant. However, the toll rate hike has no significant impact private office and residential real estate within cordoned ERP areas. The robustness and falsification tests could not reject the negative effects associated with the toll rate hike on retail real estate prices.

Оценка тенденций развития рынка торговой недвижимости в 2015 году

В статье представлены результаты исследования развития сегмента торговой недвижимости в 2014–2015 г. Автором систематизированы факторы, повлиявшие на динамику развития рынка недвижимости, представлены данные характеризующие объем предложения и обеспеченность торговыми площадями по округам Москвы, систематизированы данные об условиях аренды площадей в торговых центрах, сформулированы причины изменения условий сотрудничества девелоперов и арендаторов. В статье отмечена значимая роль внешних факторов, влияющих на изменение ситуации на рынке торговой недвижимости. Целью статьи является исследование состояния и тенденций развития спроса и предложения на рынке недвижимости и определение перспективных направлений и рисков, влияющих на формирование инфраструктуры розничной торговли. Сформулированные в статье тенденции характерны для городов–миллионников.

Rozmowa targowa w rozwijaniu więzi międzyorganizacyjnych na przykładzie branży nieruchomości handlowych

Rozmowa targowa w rozwijaniu więzi międzyorganizacyjnych na przykładzie branży nieruchomości handlowych

Retail and Real Estate: The Changing Landscape of Care Delivery

By its nature, retail medicine is founded in real estate. That retail medicine has expanded so dramatically in a relatively short period of time has taken people by surprise. This rapid growth of integrating healthcare services into retail real estate begs the question of whether real estate will eventually take on the importance in healthcare delivery that it has in retail. This article advances the view that it will. In the end, what retail and healthcare have in common is that they both reflect the attributes of demanding consumers as part of an experience-based economy, where products and services are sought based on how they fit with their lifestyles and how they make them feel (Pine and Gilmore 1998). Changing the selection process for healthcare services to be more like retail is already expanding how and where healthcare services are delivered.

Особенности развития предприятий Северо-Кавказского регионального рынка торговой недвижимости

The commercial real estate market has a great development potential in this
 country. The author evaluates current developments at the regional market
 of retail real estate and its specifics inherent to the Southern Regions of
 Russia. Domestic market plays an essential role in the national economy, as
 a crucial factor of the of economic development pace. In many regions the
 commercial real estate sector demonstrates the highest development rates
 as compared to the other sectors of economy. The commercial real estate
 sector is also considered as the most attractive for investments. These factors
 emphasize the urgency of the presented research.

A PROCESS OF DYNAMIC TRADE SHOW ACTIVITY MANAGEMENT WITHIN A REAL ESTATE DEVELOPMENT PROJECT LIFE CYCLE

This paper presents a problem of the management of trade show activity in relation to the retail Real Estate development project life cycle of a huge shopping centre. Variability of that cycle in retail Real Estate business requires dynamic and flexible approach to the management of trade show activity, which is a complex process consisting of several stages. The aim of the paper is to recognise trade show activity of the retail Real Estate developers, who were not very experienced, in the duration of a full investment project life cycle of a big shopping centre. The research has included the activity of 6 large-sized shopping centre developers, who were not very experienced, in a period of about two and a half years. Throughout that time the developers participated in 7 consecutive trade shows for retail Real Estate market. There have been applied qualitative research methods: mystery visitor (as a type of participant observation) and unstructured interviews. Also, an analysis of information and advertising materials of the developers under research has been used. An analysis of the relation between the developers’ activities performed at five stages of a project life cycle and trade show activity management at every of these stages has been explored and presented.

Is What's Bad for the Goose (Tenant), Bad for the Gander (Landlord)? A Retail Real Estate Perspective

We explore the economic dependence and financial market feedback effects among firms with economic linkages, notably landlord-tenant when shocks occur to the system. In particular, we examine 157 major tenant bankruptcy announcements of retail real estate firms over the 2000 to 2010 period. The contracting mechanism associated with retail leases provides several unique features such as percentage rents and co-tenancy clauses that are absent in other type of leases. We find that in a good economy, a tenant bankruptcy has a less negative or more positive effect on a landlord's stock return, which is consistent with the growth option hypothesis. We also find that landlords who have properties located in markets with a highly diversified economic base are more likely to exercise the growth option given a tenant departure and thus realize higher stock returns.

Retail Real Estate Cycles as Markov Chains

Executive Summary. Commercial real estate markets across cities evolve with considerable risk with respect to variables such as rent levels and growth, occupancy levels and trends, capital market developments, and construction conditions. The complex patterns are more understandable with the help of the real estate cycle models reviewed here. Describing the future with a set of alternative cycle points and their anticipated probabilities is an application of a well-developed area of probability theory, Markov chain analysis. Numerical examples show how descriptions of cycle conditions in an initial period can be used to generate risk formatted descriptions of cycle conditions. The results are plausible descriptions of future risks. Standard Markov chain calculations allow the real estate cycle analyst to anticipate the proportion of quarters that a market will reside in each cycle point.

Public policy and funding New York's new sports venues

PurposeThe purpose of this article is to examine selected public policy and funding issues of six New York Metropolitan Area sport venues and to discuss their implications for the future of sport venue construction.Design/methodology/approachThe design of this paper is a descriptive case study, which is appropriate when the question to be answered is how or why, when there is no necessary control of behavioral events, and when the study is focused on contemporary events. A systematic review of public documents and available research related to the recent development and funding of selected sport venues was conducted. In addition, a critical appraisal and financial analysis was performed on selected data collected from a variety of proprietary facility reports and public documents.FindingsBased on a systematic examination of public documents and available research it was determined that a complex mix of local, regional, and state politics has impacted significantly the dynamics of professional sport venue development in the New York Metropolitan Area. It is also apparent that there has been a significant lack of transparency with respect to public policy. In addition, it appears that sport venue development in the entire US will experience a trend toward integration with retail, commercial, and residential real estate development that appears to be a result of political pressure and the need to rapidly recoup investment costs associated with sport venue construction.Research limitations/implicationsBecause this is a descriptive case study, the findings, etc., are limited to those specific venues and public policy issues that were selected for examination.Practical implicationsThis case study should provide educators and practitioners with insight into the complexity of mission critical decisions that are involved in the development and funding of sport venues. It also should provide insight into the political process related to sport venue construction and the importance of transparency in communicating with the public.Social implicationsThis case study may provide educators and practitioners with insight into the relationship among public policy, venue financing, and selected social issues.Originality/valueThis case study provides original insight into the key elements of funding sport venues in the New York Metropolitan Area. It will provide educators and practitioners with a frame of reference for further examination of the development of sport venues worldwide.