Large-Scale Shopping Center Development Opportunities

Abstract

This paper develops a model with cross-patronage effects between anchor tenant department stores and smaller non-anchor tenants to examine the development opportunities for large-scale shopping centers in the U.S. A major theme of the analysis is that large-scale shopping center development opportunities in the U.S. have been affected by demand changes brought about by rising income levels and the way individuals value and use time. Our analysis shows that these trends lead directly to increased development opportunities for large-scale shopping centers.