Skip to main content
Article thumbnail
Location of Repository

Retail Concentration and Shopping Center Rents - A Comparison of Two Cities

By Francois Des Rosiers, Marius Theriault and Catherine Lavoie


This study aims primarily at testing whether, and to what extent, retail concentration within regional and super-regional shopping centers affects rent levels as well as the differential impact it may exert for various goods categories and sub-categories and in different urban contexts. In this paper, 1,499 leases distributed among eleven regional and super-regional shopping centers in Montreal and Quebec City, Canada, and negotiated over the 2000-2003 period are being considered. Unit base rents (base rent per sq. ft.) are regressed on a series of descriptors that include percentage rent rate, retail unit size (GLA), lease duration, shopping center age as well as 31 retail categories while the Herfindahl index is used as a measure of intra-category retail concentration. Findings suggest that while, overall, intra-category retail concentration affects base rent negatively, the magnitude and, eventually, direction of the impact varies depending on the nature of the activity and the market dynamics that prevail for the category considered.

OAI identifier:

Suggested articles


  1. (2001). A Simulation Analysis of the Relationship Between Retail Sales and Shopping Center Rents.
  2. (1982). An Economic Theory of Central Places. Economic Journal,
  3. (2002). An Empirical Analysis of Community Center Rents.
  4. (2001). Anchors and Externalities.
  5. (1985). Association of Shopping Center Anchors with Performance of Non-Anchor Specialty Chain’s Stores.
  6. (2006). Big Boxes versus Traditional Shopping Centers: Looking at Households’ Shopping Trip Patterns. Journal of Real Estate Literature,
  7. Bricks-and-Clicks: E-commerce Strategies for the Chain Retailer.
  8. (1990). Business Enterprise Value in Shopping Malls: An Empirical Test.
  9. (2006). Competitive Analyses between Regional Malls and Big-box Retailers: A Correspondence Analysis for Segmentation and Positioning.
  10. (1990). Consumer and Producer Behaviour in a Multipurpose Shopping Environment. Geographic Analysis,
  11. (1983). Consumer Demand and Multipurpose Shopping Behavior. Geographical Analysis,
  12. (2005). Consumers Preferences for Retail Formats: Consequences for Tenant Mix Strategies.
  13. (1995). Contracting With Spatial Externalities and Agency Problems: The Case of Retail Leases. Regional Science and Urban Economics,
  14. (1996). Critical is a Good Location to a Regional Shopping Center?,
  15. (1999). Design and Value: Spatial Form and the Economic Failure of a Mall.
  16. (1940). Die ra ¨umliche Ordnung
  17. (1966). Die Zentralen Orte in Suddeutschland. Verlag. Traduit par Baskin,
  18. (2005). Disaggregating Neighborhood and Community Center Property Types.
  19. (2005). Escapism, Consumer Lock-in, Attitude, and Purchase: An Illustration from an Online Shopping Context.
  20. (1996). Foreword State of the Discipline: Malaise or Renaissance?
  21. (2003). Herfindahl index. From Wikipedia,
  22. (1993). Inter Store Externalities and Space Allocation in Shopping Centers.
  23. (1998). Internalizing Externalities: The Pricing of Space in Shopping Malls.
  24. (1994). Managing Tenant Mix in New Shopping Centers.
  25. (2006). Modelling Shopping Centre Choices: Effects of Car Ownership on Clothing Shopping in Singapore.
  26. (2000). Percentage Rent in Retail Leasing: The Alignment of Landlord–Tenant Interests. Real Estate Economics,
  27. (1987). Refining the Analysis of Regional Diversification for Income-Producing Real Estate.
  28. (1990). Retail Leasing: Determinants of Shopping Center Rents.
  29. (1996). Shopping Center Tenant Selection and Mix: A Review.
  30. (2003). Spatial Mismatch: From the Hypothesis to the Theories. Working Paper # 693,
  31. (1993). Spatial Structure and Rents in Shopping Centers. Working paper,
  32. (1929). Stability in Competition. The Economic Journal,
  33. (1992). Tenant Placement, and Shopper Behavior in a Planned Shopping Centre. The Services Industries Journal,
  34. Tenants and E-commerce: Will the Retail Industry Change Significantly?
  35. (1985). Tests of Intra Urban Central Place Theories. Economic Journal,
  36. (2005). The ´riault, and L. Me ´ne ´trier. Spatial versus Non-Spatial Determinants of Shopping Center Rents: Modeling Location and Neighborhood-Related Factors.
  37. (2004). The ´riault. Agglomeration Economies and Retail Concentration as Determinants of Shopping Center Rents.
  38. (1993). The Determinants of Shopping Centre Rents.
  39. (1999). The Determination of Rent in Shopping Centers: Some Evidence from Hong Kong. Journal of Real Estate Literature,
  40. (1987). The Economics of Architecture and Urban Design: Some Preliminary Findings.
  41. (1994). The Effect of Anchor Tenant Loss on Shopping Center Rents.
  42. (2003). The Effect of Firm Characteristics on the Use of Percentage Retail Leases.
  43. (2000). The Effects of Technology on Retail Sales.
  44. (2000). The Impact of Internet E-commerce on the Traditional Merchandising of Women’s Clothing in Shopping Centers/Malls.
  45. (2003). The Management of Positive InterStore Externalities in Shopping Centres: Some Empirical Evidence. Working Papers in Real Estate & Planning 10/03,
  46. (1958). The Selection of Retail Locations.
  47. (1929). Theory of the Location of Industries.
  48. (1964). Toward a General Theory of Land Rent.
  49. (2000). Towards a Dynamic Aggregate Shopping Model and its Applications to Retail Trading Hour and Market Area Analysis. Regional Science,
  50. (2006). Using Hedonic and Utilitarian Motivations to Profile Inner City Consumers.
  51. (2002). What Do We Know About the Determinants of Shopping Center Sales ? Spatial vs. Non-Spatial Factors. Journal of Real Estate Literature,
  52. (1991). What is Location? The Appraisal Journal,
  53. (2004). Who Will Be Winners and Losers? Competitive Analyses Between Regional Malls and Big-Box Retailers.
  54. Working Papers in Real Estate & Planning 2/04, University of Reading Business School, 2004.Retail Concentration and Shopping Center Rents

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.