Shopping Center Tenant Selection and Mix

Abstract

In a market economy, retail tenants cluster by type and by location. The result is a hierarchy of centers offering a mix of goods and services appropriate to the market area. This occurs because different goods and services have different trade areas and minimum purchasing power requirements. Central place theory helps describe, explain, and predict changes in the area or purchasing power of a region. A good market analysis will use those factors identified in the theory to select potential tenants.