PHYSICS 102 Lecture Notes - Lecture 10: Market Power, Credit Risk, Moral Hazard
Document Summary
Summary eckert, he, west an empirical analysis of tenant location patterns near department stores in planned regional shopping centers. Location of store within mall can affect sales and profits of store, its neighbors and shopping center owner/ developer interests of parties might not coincide. The density of stores selling comparison shopping goods is larger near department stores within centers that are older or have a larger gross leasable area: density is negatively related to the number of department stores in the center. Shopping center developers, department store chains, and bargaining power. Department stores important to shopping center impact size, character, success of center. Leases with department stores allow developers to more easily fulfill the terms, floor area, and credit risk conditions imposed by lenders. Department stores pay lower rents per sqft than other stores in the mall. Department stores might have power to negotiate special clauses in their lease agreement.
