RETAIL SPACE MARKET IN THE EAST COAST AREA

Abstract

Some real estate agents judge shopping centres on a rule of thumb basis by noting their size, the presence of well-known anchor tenants and the strength of competition. These agents who, though welI-quaIified to find retail outlets, are not always qualified to assess them. In any case, an agent is likely to have an interest in selling retail space, without taking fully into account the exact needs of the retailer. Some agents claim that they can tell a shop's potential almost intuitively, and it is quite true that a few gifted and usually successful retailers can, merely by sensing the atmosphere of a shopping centre produce a turnover estimate not so far from subsequent achievement. But to be more often right than wrong takes years of experience. In other words, the agent's advice is prone to catch the businessman's disease of misplaced optimism based on hunch alone. In some cases, the agent refers to the 'atmosphere' of a centre which can be evaluated subjectively from the apparent prosperity of it or the width of its pavement, etc., and makes his own personal estimate on its potential. Thus, 'intuition' on its own is not enough. This is especially so in a retail space market like the East Coast Area which is highly competitive. For this study, the writer discusses a set of factors which should be considered in choosing a retail location. The results of a shopping centre survey are presented to support this analysis of location factors. In the process, it is hoped that the reader comes to appreciate the need to know more about the various concepts of retailing in order to assess a retail location.