DETERMINANTS OF RETAIL RENTALS

Abstract

Many studies had been done relating to the factors affecting the shop rentals of Singapore shopping centers. Most of the past studies are on a qualitative basis. Hence, there are gaps yet to be explored. This dissertation aims to find out the various factors affecting the rental of a shop within a shopping center and the degree of influence of each factor. A total of 442 data is obtained for the study and a regression model is used to find out their linear relationships and strength of influence of the rental determinants. The study shows that the direction of influence for level, position and types of goods sold on shop rentals is negative whereas, frontage, area and duration have a positive impact on rental values. The study also reveals that area has the greatest impact on rental values and duration and types of goods sold appear to have the least impact. Lastly, the regression models generated are very useful tools to help determine the market rental of a shop unit.