Chain Affiliation, Store Prestige, and Shopping Center Rents

摘要

In this study, we examine whether, and to what extent, chain affiliation within regional and super-regional shopping centers affects store rent levels. The rent impact of chain affiliation is assessed in interaction with store prestige. Our database includes 1,367 retail leases in the 2000-2003 period for 11 regional and. super-regional shopping centers in Montreal and Quebec City, Canada. The findings suggest that, when compared with independent and local chain-affiliated stores selling low-end goods, middle and high-end goods chain stores operating at upper levels of affiliation are charged a rent premium. Such a profit-sharing scheme between major, high-end chain stores and mall owners, it is argued, will occur under a regulatory environment that limits the local supply of top retail space.