Author: Mark J. Eppli and John D. Benjamin

Start Page: 5
End Page: 32
Volume: 9
Issue Number: 1
Year: 1994
Publication: Journal of Real Estate Research

Abstract: Retail research has evolved over the past sixty years. Christaller's early work on central place theory, with its simplistic combination of range and threshold has been advanced to include complex consumer shopping patterns and retailer behavior in agglomerated retail centers. Hotelling's seminal research on competition in a spatial duopoly has been realized in the form of comparison shopping in regional shopping centers. The research that has followed Christaller and Hotelling has been as wide as it has been deep, including literature in geography, economics, finance, marketing, and real estate. In combination, the many extensions of central place theory and retail agglomeration economics have clearly enhanced the understanding of both retailer and consumer behavior. In addition to these two broad areas of shopping center research, two more narrowly focused areas of research have emerged. The most recent focus in the literature has been on the positive effects large anchor tenants have on smaller non-anchor tenant sales. These positive effects are referred to as retail demand externalities. Exploring the theoretical basis for the valuation of shopping centers has been another area of interest to researchers. The primary focus of this literature is based in the valuation of current and expected lease contracts.