The evaluation of shopping centers is an extremely complex matter for the real estate appraiser, as it is necessary to keep in mind a set of concepts specific to this commercial activity and, also, due to the lack of available information.
We have already addressed this theme in the article “Shopping Centers”, in which, according to the “International Council of Shopping Centers”, we classify shopping centers (Retail Park, Factory Outlet, Theme-Oriented Center…) according to their various attributes.
Now, let us recall other equally important concepts:
- Anchor stores: are retail stores or services that are the main attraction of a shopping center and that contribute significantly to the generation of consumer traffic (which is the shopping center that does not have an average / large area or a Zara, pass the advertising?).
- Catchment area: defines the geographical area of influence of the shopping center, that is, the area and population from which the shopping center attracts visitors and customers. Its size and extent vary according to the nature and importance of the businesses operating in the shopping center, the demographic density of the area, the existence of natural or artificial barriers, the road network and also the presence of competitors.
- Common areas: are all the areas and structures of the shopping center that are not for the exclusive use of any tenants but used together by all stores and the public. They can be located inside the shopping center (access areas, food courts, …), or outside it (parking lots, common green spaces and other decorative and signage elements, …).’
-Foofall (difficult to translate!): Corresponds to the number of buyers who visit a store or business in a certain period. Having a direct relationship with a shopkeeper’s sales revenue, movement trends provide a useful growth indicator and help investors understand the increase (or decline) in sales of a store or business.
There are also some important ones that justify a separate article and which is related to the concepts of variable income and guaranteed minimum income.