Analyzing the determinants of shopping center rents in Spain: an empirical study

Purpose This study examines the factors influencing retail rents in shopping centers across Spain. Design/methodology/approach This study utilizes datasets from 27 shopping centers across Spain, utilizing real-world data from a real estate company operating in the country. A regression model is constructed to estimate the impact of various factors on retail rent, including physical attributes, economic conditions, tenant mix and the type of shopping centers. Findings The empirical analysis has identified several factors that significantly determine the rental rates of stores within shopping centers. These factors include the size and location of the store, the anchor status and retail category of the tenant, and the type of shopping center. Notably, stores located on lower floors tend to command higher rental rates compared to those on higher floors. On the contrary, the distance to the nearest anchor tenant does not appear to impact rental values. Originality/value This is the first study to evaluate retail rents in Spanish shopping centers using real-world data from a leading real estate company. The findings present valuable insights for shopping center managers and landlords regarding tenant placement and lease structuring and contribute to the broader literature on retail real estate and shopping center management.