DOCUMENT DE TRAVAIL RETAIL STORE AFFILIATION AND PRESTIGE AND THEIR. François DES ROSIERS Marius THÉRIAULT Marie-Ève GAGNÉ

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1 Publié par : Published by: Publicación de la: Édition électronique : Electronic publishing: Edición electrónica: Disponible sur Internet : Available on Internet Disponible por Internet : Faculté des sciences de l administration Université Laval Québec (Québec) Canada GK 7P4 Tél. Ph. Tel. : (48) Télec. Fax : (48) Karine Langlois Vice-décanat - Recherche et affaires académiques Faculté des sciences de l administration rd@fsa.ulaval.ca DOCUMENT DE TRAVAIL RETAIL STORE AFFILIATION AND PRESTIGE AND THEIR IMPACT ON SHOPPING CENTER RENTS A CASE STUDY François DES ROSIERS Marius THÉRIAULT Marie-Ève GAGNÉ Version originale : Original manuscript: Version original: Série électronique mise à jour : On-line publication updated : Seria electrónica, puesta al dia ISBN

2 RETAIL STORE AFFILIATION AND PRESTIGE AND THEIR IMPACT ON SHOPPING CENTER RENTS - A CASE STUDY - Extended Abstract of paper presented at the 7th AREUEA International Conference, Istanbul, Turkey, July 3-6, 2008 by François Des Rosiers, Ph.D., Faculty of Business Administration, Marius Thériault, Ph.D., Land Planning Research Center and Marie-Ève Gagné, MBA-Marketing Laval University, Quebec City, Canada Contact address: François Des Rosiers, Urban & Real Estate Management, Laval University, Quebec City, Canada, GK 7P4 Phone: , Ext. 502 Fax : Francois.Desrosiers@fsa.ulaval.ca Co-authors: Marius Thériault, Director, Planning and Research Centre, Laval University, Québec, Canada, GK 7P4 Phone: ext. 5899, Marius.Theriault@crad.ulaval.ca Marie-Ève Gagné, Master s Student, FSA, Laval University Marie-Eve.Gagne.9@ulaval.ca KEY WORDS: Shopping Center Rents, Retail Mix, Retail Image, Anchors, Chain Store. OBJECTIVE, CONTEXT OF RESEARCH AND DATABASE This study aims at testing whether, and to what extent, chain affiliation within regional and super-regional shopping centers affects store rent levels. In this paper, based on the hedonic methodology, international, national, provincial as well as local chains are considered together with independent stores. The impact of store prestige on rents is also assessed. The research is performed in a Canadian context, with eleven regional and superregional shopping centres located in Quebec City (5) and Montreal (6) being used, totalling - -

3 over three million square feet of gross leasable area (GLA), excluding storage space. The database consists of,453 leases running over the period. Base rent is used as the dependent variable while regressors include: GLA, shopping center s weighted age, a location variable, lease duration, a time variable, the percentage rent rate, a series of retail category variables, the shopping center concentration index, the retail chain affiliation level and, finally, a store level-of-prestige descriptor. In line with the current real estate literature on retail modeling, regression models are calibrated using a log-linear functional form. 2. LITERATURE REVIEW Over the past decades, several authors have studied the determinants of shopping center rents with respect to a large array of issues (Benjamin et al., 990; Sirmans, 990; Sirmans and Guidry, 993; Gatzlaff et al., 994; Gerbich, 998; Mejia and Benjamin, 2002; Hardin and Wolverton, 2000 & 200; Hardin et al., 2002; Hardin and Carr, 2006; Yuo et al., 2003; Des Rosiers and Thériault, 2004). So far, very few studies have focused on the impact of chain affiliation on rent levels. The academic literature on shopping centers has namely evolved around various theories of urban spatial structure (Hotelling, 929; Christaller, 933) and spatial competition (Lerner and Singer, 937). With regard to the location theory, sales potential in shopping centers are looked upon through the concepts of agglomeration economies and externalities derived from the presence of anchor tenants (Eaton and Lipsey, 979 & 982; West et al., 985; Ghosh, 986; Fisher and Yezer, 993; Eppli and Benjamin, 994; Eppli and Shilling, 996; Pashigan and Gould, 998; Mejia and Benjamin, 2002) whose bargaining power results in their negotiating lower rents with shopping centers owners (Anderson, 985). Consumer traffic levels (Sirmans and Guidry, 993) and customers fidelity have also been investigated as rent determinants in relation with shopping center age (Tay et al. 999). Yuo et al. (2004), Des Rosiers and Thériault (2004) and Des Rosiers et al. (2005) are among the few who have looked at retail concentration and its impact on shopping center rents. Risk issues with respect to rent settlement are yet another field of shopping center research. Miceli and Sirmans (995) demonstrate that the type of rent (base or percentage) used by owners depends upon their aversion for tenant risk while Brueckner (993) and Chun et al. (2003) focus on the relation between risk aversion and the percentage rent. In his study on,035 leases from twenty regional East Coast shopping centers, Weathon (2000) concludes that percentage rent varies positively with base rent. Retail image research first started with Martineau (958) who stated that store personality is an operational force that defines the store in the consumer mind. From then on, many authors have investigated the issue (Lindquist, 974; James et al., 976; Bearden, 977; Pessemier, 980; Nevin and Houston, 980; Houston and Nevin, 98; Mazursky and Jacoby, 986; Ghosh, 990; Osman, 993; Bloemer and De Ruyter, 998; Birtwistle et al., 998; Newman and Patel, 2004). By and large, retail image emerges as a consumer s perception and results from the highly complex combination of several store and/or shopping center attributes (Houston and Nevin, 98; Bearden, 977; James and al, 976; Jain and Etgar, 976; Mazursky and Jacoby, 986; Grewal and al, 998). Marketing strategies, finally, are also shown to trigger the establishment of an adequate shopping - 2 -

4 center image (Jain and Etgar, 976; James and al., 976; Grewal and al., 998; Carpenter and Moore, 2005) which can positively affect sales level (Brown, 992; Brown and Burt, 992; Kirkup and Rafiq, 994; Anikeeff, 996). Regarding chain store affiliation and its impact on rents, Mejia and Benjamin (2002) suggest that, while it is reasonable for shopping center owners to search for some equilibrium between franchisee and independent stores, they often prefer dealing with acknowledged retail chains because of their clientele attraction power. In that respect, Golosinski and West (995) emphasize chains capacity to promote their own outlets whereas independent stores rather tend to skimp on their communication and marketing expenses while relying on chain stores attraction for boosting their sales. Finally, chain stores prove to be financially more stable and more profitable (Mejia and Benjamin, 2002; Wenthe et al., 988). Although constraints differ among retail categories, all chain stores do compete for the limited space available in shopping centres. Those who can t have their requirements satisfied will generally agree to pay a higher rent for locating in another shopping center so as to get their share of the market (Golosinski and West, 995). Furthermore, chain stores often look for specific locations that will reduce competition from rival chains (Golosinski and West, 995). According to Benjamin et al. (992), tenants with a national affiliation as well as local chain stores seem to experience a lower level of risk because of their higher creditworthiness, operational experience and traffic enhancement potential. 3. PRELIMINARY FINDINGS AND DISCUSSION The present study investigates whether, and to what extent, chain affiliation within regional and super-regional shopping centers affects chain store rent levels. In contrast with Benjamin et al. (992) findings, preliminary findings suggest that, on the whole, chain stores do command significantly higher rents, both in Montreal and Quebec City, with an average premium of roughly 5 percent over independent stores rents. When chain affiliation levels are accounted for though with provincial chain stores serving as the reference category -, only national affiliations do translate into significantly higher rents (8 percent premium for Quebec City shopping centers) while a negative rent premium is assigned to both local chain stores (-0 percent, Quebec City) and unaffiliated outlets (-2.5% and -4.4% for Montreal and Quebec City shopping centers, respectively). Findings also suggest that prestige stores tend to command significantly higher rents than standard outlets do, with the rent premium ranging from 0.6% to 3.9%, depending on the model. Such results are consistent with those obtained for chain stores since, by and large, international and national chain stores tend to exhibit a high level of prestige as opposed to independent stores who are fewer to share such an advantage. Retail rent determinants form a highly complex topic which need be further investigated. Ultimately, shopping center rents result from an array of interweaving forces which include socioeconomic, demographic, market structure and marketing strategy dimensions. Among the issues that need be raised is the role that the local demand profile plays in the location choice of major retail chain and prestige stores. Des Rosiers et al. (2005) have highlighted the complex interactions between, on the one hand, endogenous determinants of shopping - 3 -

5 center rents and, on the other hand, exogenous, space-related, factors such as customer ability to spend. In their study on neighbourhood center image, Hardin and Wolverton (200) suggest that the higher rental rates met by anchor tenants and generally ascribed to some anchor brand effect may actually reflect the sales potential of the consumer market the anchor chain chooses to serve. Whether this applies to Montreal and Quebec City s regional and super-regional shopping centers is the object of a forthcoming paper. REFERENCES ANDERSON, Patricia M. (985). Association of shopping center anchors with performance of a nonanchor speciality chain s stores. Journal of Retailing, 6, ANIKEEF, M. (996). Shopping Center Tenant Selection and Mix: a Review, in J. Benjamin, ed., Research Issues in Real Estate, Vol. 3: Megatrends in Retail Real Estate, Norwell : Kluwer Academic Publishers. BEARDEN, William O. (977). Determinant attributes of Stores Patronage Downtown Versus Outlying Shopping Centers. Journal of Retailing, Greenwich: Summer 977, 53:2, 5 BENJAMIN, John D., BOYLE, Glenn W. and SIRMANS, C. F. (992). Price discrimination in shopping center leases. Journal of Urban Economics, 32:3, BIRTWISTLE, G., CLARKE, I. and FREATHY, P. (998), Customer decision making in fashion retailing: a segmentation analysis. International Journal of Retail & Distribution Management, 26:4, BLOEMER, Josée, DE RUYTER, Ko (998). On the relationship between store image, store satisfaction and store loyalty. European Journal of Marketing, 32: 5/6, BROWN, Stephen (992). Tenant mix, tenant placement, and shopper behaviour in planned shopping centre. The Services Industries Journal, 2:3, BROWN, S. and BURT, S. (992), Retail marketing: International perspectives- Introduction, European Journal of Marketing, 26: 8/9, BRUECKNER, J. (993). Inter-Store Externalities and Space Allocation in Shopping Centers. Journal of Real Estate Finance and Economics, 7, 5-7. CARPENTER, Jason M. and MOORE, Marguerite (2005). Consumer Preferences for Retail Formats: Implications for Tenant Mix Strategies. Journal of Shopping center Research, 2:, Spring/Summer. CHRISTALLER, Walter (933). Die zentralen Orte in Suddeutschland. Jena: Gustav Fischer. (Translated (in part), by Charlisle W. Baskin, as Central Places in Southern Germany. Prentice Hall 966). CHUN, Gregory H., EPPLI, Mark J. and SHILLING, James D. (2003). The effect of firm characteristics on the use of percentage retail leases. Journal of Real Estate Finance and Economics, 27:, DES ROSIERS, F., THÉRIAULT, M. and MÉNÉTRIER L. (2005). Spatial versus Non-Spatial Determinants of Shopping Center Rents: ling Location and Neighbourhood-Related Factors. Journal of Real Estate Reserach, 27:3, DES ROSIERS, F. and THÉRIAULT, M. (2004). Agglomeration economies and retail concentration as determinants of shopping center rents. Paper presented at the 2004 Annual ARES Conference, Captiva Island, Fa., USA, April 20-24, 28 pages

6 DES ROSIERS, F., THÉRIAULT, M., LAVOIE, C. (2005). Retail concentration and shopping center rents, a comparison of two cities. Working Paper Series # , Faculty of Business Administration, Laval University, 28 pages (Forthcoming in the JRER, 2008). EATON, B. Curtis and LIPSEY, Richard G. (979). Comparison shopping and the clustering of homogeneous firms. Journal of Regional Science, 9:4, EATON, B. Curtis and LIPSEY, Richard G. (982). An economic theory of central places. Economic Journal, 92:365, EPPLI, Mark J. and BENJAMIN, John D. (994). The evolution of shopping center research: A review and analysis. Journal of Real Estate Research, 9:, EPPLI, Mark J. and SHILLING, James D. (996). How critical is a good location to a regional shopping center?. Journal of Real Estate Research, 2:3, FISHER, J. D. and YEZER, A. (993). Spatial Structure and Rents in Shopping Centers. Working paper, Indiana University. GATZLAFF, Dean H., SIRMANS, G. Stacy and DISKIN, Barry A. (994). The effect of anchor tenant loss on shopping center rents. Journal of Real Estate Research, 9:, GERBICH, Marcus (998). Shopping center rentals: An empirical analysis of retail tenant mix. Journal of Real Estate Research, 5:3, GHOSH, Avijit (986). The value of a mall and other insights from a revised central place model. Journal of Retailing, 62, GHOSH, A. (990), Retail Management, 2d ed., The Dryden Press, Chicago, IL. GOLOSINSKI, Dorothy and WEST Douglas S. (995). Double Moral Hazard and Shopping Center Similarity in Canada. Journal of Law, Economics, & Organization, :2, GREWAL, D. R., KRISHMAN, R., BAKER, J. and BORIN, N.(998). The effect s store name, brand name and price discounts on consumers evaluations and purchase intentions. Journal of Retailing, 74:3, HARDIN III, W. and M. L. WOLVERTON (2000). Micro-Market Determinants of Neighborhood Center Rental Rates,.Journal of Real Estate Research, 20:3, HARDIN III, W. G., and M. L. WOLVERTON (200). Neighborhood Center Image and Rents. Journal of Real Estate Finance and Economics, 23:, HARDIN, William G., WOLVERTON, Marvin, L and CARR, Jon (2002). An Empirical Analysis of Community Center Rents. Journal of Real Estate Research, 23:-2, HARDIN III, W. G., and Jon CARR (2006). Retail Property Segmentation: Neighborhood and Community Centers. Journal of Real Estate Research, 28:2, HOTELLING, Harold (929). Stability in Competition. The Economic Journal, 39:53, HOUSTON, M.J. and NEVIN, J.R. (98), Retail shopping area image: structure and congruence between downtown and shopping centres, Advances in Consumer Research, Vol.8, JAIN, Arun K., and ETGAR, Michael (976). Measuring store image through multidimensional scaling of free response data. Journal of Retailing, 52:4, JAMES, Don L., DURAND, Richard M. and DREVES, Richard A. (976). The use of a multi-attribute attitude model in a store image study. Journal of Retailing, 52:2, KIRKUP, Malcolm and RAFIQ, Mohammed (994). Managing tenant mix in new shopping centers. International Journal of Retail and Distribution Management, 22:6, LERNER, A.P. and SINGER, H.W. (937). Some notes on duopoly and spatial competition. The Journal of Political Economy, 45:2, LINDQUIST, J.D. (974), Meaning of image: survey of empirical and hypothetical evidence. Journal of Retailing, Vol. 50,

7 MARTINEAU, Pierre (958). The Personality of the Retail Store. Harvard Business Review, January-February, MAZURSKY, David and JACOBY, Jacob (986). Exploring the development of store images. Journal of Retailing, 62:2, MEJIA, Luis C. and BENJAMIN, John D. (2002). What do we know about the determinants of shopping center sales? Spatial vs. non-spatial factors. Journal of Real Estate Literature, 0:, MICELI, T. J. and SIRMANS, C. F. (995). Contracting with spatial externalities and agency problems: The case of retail leases. Regional Science and Urban Economics, 25, NEVIN, John R. and HOUSTON, Michael J. (980). Image as a component of attraction to intra urban shopping areas. Journal of Retailing, 56:, NEWMAN, J. Andrew and PATEL, Darshika (2004), The marketing directions of two fashion retailers. European Journal of Marketing, 38:7, OSMAN, M.Z. (993), A conceptual model of retail image influences on loyalty patronage behaviour. The International Review of Retail, Distribution and Consumer Research, 3:2, PASHIGAN, B. Peter and GOULD, Eric, D. (998). Internalizing externalities: The pricing of space in shopping malls. Journal of Law and Economics, XLI, PESSEMIER, Edgar, A. (980), Store Image and Positioning. Journal of Retailing, 56:; pg. 94 SIRMANS, C. F. (990). Retail Leasing: The determinants of shopping center rents. Journal of the American Real Estate and Urban Economics Association, 8:3, SIRMANS, C. F. and GUIDRY, Krinsandra A. (993). The determinants of shopping center rents. Journal of Real Estate Research, 8:, 7-5. TAY, Richard S., LAU, Clement K and LEUNG, Marie S. (999) The determination of rent in shopping centers: Some evidence from Hong Kong. Journal of Real Estate Literature. 7:2, WENTHE, James F.. FREDENBERGER, William C., De THOMAS, Arthur R. (988). Some Empirical Evidence on Store-Tenant Mortality Rates in Large Regional Shopping Centers. Southwest Journal of Business and Economics; 6:, WEST, Douglas S., VON HOHENBALKEN, Balder and KRONER, Kenneth (985). Tests of intra urban central place theories. Economic Journal, 95, 0-7. WHEATON, William C. (2000). Percentage rent in retail leasing: The alignment of landlord tenant interests. Real Estate Economics, 28:2, YUO, Tony Shun-Te, CROSBY, Neil, LIZIERI, Colin and McCANN, Philip (2004). Tenant mix variety in regional shopping centres: Some UK empirical Analyses. University of Reading Business School, Department of Real Estate & Planning, Working paper series 2004, 29 pages

8 APPENDIX TABLE A- : FULL DESCRIPTIVE STATISTICS Descriptive Statistics Base Rent ($/sq.ft) Gross Leaseable Area (sq.ft) Percentage Rent Rate Lease duration, in years Time elapsed since Jan. 97, in years Shopping center weighted age taking into account expansions and additions Shopping center is located in Quebec City Shopping center is located in Montreal Camera and Photographic Supplies Stores Beer, Wine, and Liquor Stores Optical Goods Stores Men's Clothing Stores Women's Clothing Stores Children's and Infants' Clothing Stores Family Clothing Stores Clothing Accessories Stores Other (Unisex) Clothing Stores Shoe Stores Luggage and Leather Goods Stores Sporting Goods Stores Hobby, Toy, and Game Stores Sewing, Needlework, and Piece Goods Stores Gambling Industries Full-Service Restaurants Limited-Service Restaurants (Fast Food) Furniture and Home Furnishings Stores - Gr. Electronics and House Appliance Stores - Gr. 2 Speciality Food Stores - Gr. 3 Drug, Health and Personal Care Stores - Gr. 4 Grocery Stores - Gr. 5 Jewelry and Luggage Stores - Gr. 6 Music and Book Stores - Gr. 7 Department and Discount Department Stores - Gr. 8 Office Supplies, Stationery and Gift Stores - Gr. 9 Telecommunications - Gr. 0 Banking, Finance, Insurance and Real Estate - Gr. Hair, Nail and Skin Care Services - Gr. 2 Travel Agencies - Gr. 3 Drycleaning and Footwear Repair - Gr. 4 Concentration Index based on GLA (Herfindhal Index) International Chain Stores National Chain Stores Provincial Chain Stores Local Chain Stores Independent Stores Low level of prestige Neutral level of prestige High level of prestige N Minimum Maximum Sum Mean Std. Deviation, , , , ,42 2,955,806 2,034 3,468, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,453 0, ,

9 TABLE A-2 : MODEL - GLOBAL MODEL WITH DETAILED CHAIN STORES CATEGORIES (REFERENCES: MONTREAL, MEN S CLOTHING, PROVINCIAL CHAIN STORES, NEUTRAL LEVEL OF PRESTIGE) Summary Adjusted Std. Error of R R Square R Square the Estimate Regression Residual Total ANOVA Sum of Squares df Mean Square F Sig , ,428 a (Constant) ln_gross leaseable area Percentage Rent Rate Shopping center weighted age taking into account expansions and additions Shopping center is located in Quebec City Time elapsed since Jan. 97, in years Lease duration, in years Camera and Photographic Supplies Stores Beer, Wine, and Liquor Stores Optical Goods Stores Women's Clothing Stores Children's and Infants' Clothing Stores Family Clothing Stores Clothing Accessories Stores Other (Unisex) Clothing Stores Shoe Stores Luggage and Leather Goods Stores Sporting Goods Stores Hobby, Toy, and Game Stores Sewing, Needlework, and Piece Goods Stores Gambling Industries Full-Service Restaurants Limited-Service Restaurants (Fast Food) Furniture and Home Furnishings Stores - Gr. Electronics and House Appliance Stores - Gr. 2 Speciality Food Stores - Gr. 3 Drug, Health and Personal Care Stores - Gr. 4 Grocery Stores - Gr. 5 Jewelry and Luggage Stores - Gr. 6 Music and Book Stores - Gr. 7 Department and Discount Department Stores - Gr. 8 Office Supplies, Stationery and Gift Stores - Gr. 9 Telecommunications - Gr. 0 Banking, Finance, Insurance and Real Estate - Gr. Hair, Nail and Skin Care Services - Gr. 2 Travel Agencies - Gr. 3 Drycleaning and Footwear Repair - Gr. 4 Concentration Index based on GLA (Herfindhal Index) International Chain Stores National Chain Stores Local Chain Stores Independant Stores Low level of prestige High level of prestige a. Dependent Variable: ln_base rent ($/sq.ft) Unstandardized Standardized Collinearity Statistics B Std. Error Beta t Sig. VIF

10 TABLE A-3 : MODEL 2 GLOBAL MODEL WITH GROUPED CHAIN STORES CATEGORIES (REFERENCES: MONTREAL, MEN S CLOTHING, NON-CHAIN MEMBER, NEUTRAL LEVEL OF PRESTIGE) Summary Adjusted Std. Error of R R Square R Square the Estimate Regression Residual Total ANOVA Sum of Squares df Mean Square F Sig , ,428 a (Constant) ln_gross leaseable area Percentage Rent Rate Shopping center weighted age taking into account expansions and additions Shopping center is located in Quebec City Time elapsed since Jan. 97, in years Lease duration, in years Camera and Photographic Supplies Stores Beer, Wine, and Liquor Stores Optical Goods Stores Women's Clothing Stores Children's and Infants' Clothing Stores Family Clothing Stores Clothing Accessories Stores Other (Unisex) Clothing Stores Shoe Stores Luggage and Leather Goods Stores Sporting Goods Stores Hobby, Toy, and Game Stores Sewing, Needlework, and Piece Goods Stores Gambling Industries Full-Service Restaurants Limited-Service Restaurants (Fast Food) Furniture and Home Furnishings Stores - Gr. Electronics and House Appliance Stores - Gr. 2 Speciality Food Stores - Gr. 3 Drug, Health and Personal Care Stores - Gr. 4 Grocery Stores - Gr. 5 Jewelry and Luggage Stores - Gr. 6 Music and Book Stores - Gr. 7 Department and Discount Department Stores - Gr. 8 Office Supplies, Stationery and Gift Stores - Gr. 9 Telecommunications - Gr. 0 Banking, Finance, Insurance and Real Estate - Gr. Hair, Nail and Skin Care Services - Gr. 2 Travel Agencies - Gr. 3 Drycleaning and Footwear Repair - Gr. 4 Concentration Index based on GLA (Herfindhal Index) Member of a Chain Low level of prestige High level of prestige a. Dependent Variable: ln_base rent ($/sq.ft) Unstandardized Standardized Collinearity Statistics B Std. Error Beta t Sig. VIF

11 TABLE A-4 : MODEL 3 MONTREAL CENTERS WITH DETAILED CHAIN STORES CATEGORIES (REFERENCES: MEN S CLOTHING, PROVINCIAL CHAIN STORES, NEUTRAL LEVEL OF PRESTIGE) Summary Adjusted Std. Error of R R Square R Square the Estimate Regression Residual Total ANOVA Sum of Squares df Mean Square F Sig a (Constant) ln_gross leaseable area Percentage Rent Rate Shopping center weighted age taking into account expansions and additions Time elapsed since Jan. 97, in years Lease duration, in years Camera and Photographic Supplies Stores Beer, Wine, and Liquor Stores Optical Goods Stores Women's Clothing Stores Children's and Infants' Clothing Stores Family Clothing Stores Clothing Accessories Stores Other (Unisex) Clothing Stores Shoe Stores Luggage and Leather Goods Stores Sporting Goods Stores Hobby, Toy, and Game Stores Sewing, Needlework, and Piece Goods Stores Gambling Industries Full-Service Restaurants Limited-Service Restaurants (Fast Food) Furniture and Home Furnishings Stores - Gr. Electronics and House Appliance Stores - Gr. 2 Speciality Food Stores - Gr. 3 Drug, Health and Personal Care Stores - Gr. 4 Grocery Stores - Gr. 5 Jewelry and Luggage Stores - Gr. 6 Music and Book Stores - Gr. 7 Department and Discount Department Stores - Gr. 8 Office Supplies, Stationery and Gift Stores - Gr. 9 Telecommunications - Gr. 0 Banking, Finance, Insurance and Real Estate - Gr. Hair, Nail and Skin Care Services - Gr. 2 Travel Agencies - Gr. 3 Drycleaning and Footwear Repair - Gr. 4 Concentration index based on GLA for Montreal centers International Chain Stores National Chain Stores Local Chain Stores Independant Stores Low level of prestige High level of prestige a. Dependent Variable: ln_base rent ($/sq.ft) Unstandardized Standardized Collinearity Statistics B Std. Error Beta t Sig. VIF

12 TABLE A-5 : MODEL 4 - MONTREAL CENTERS WITH GROUPED CHAIN STORES CATEGORIES (REFERENCES: MEN S CLOTHING, NON-CHAIN MEMBER, NEUTRAL LEVEL OF PRESTIGE) Summary Adjusted Std. Error of R R Square R Square the Estimate Regression Residual Total ANOVA Sum of Squares df Mean Square F Sig a (Constant) ln_gross leaseable area Percentage Rent Rate Shopping center weighted age taking into account expansions and additions Time elapsed since Jan. 97, in years Lease duration, in years Camera and Photographic Supplies Stores Beer, Wine, and Liquor Stores Optical Goods Stores Women's Clothing Stores Children's and Infants' Clothing Stores Family Clothing Stores Clothing Accessories Stores Other (Unisex) Clothing Stores Shoe Stores Luggage and Leather Goods Stores Sporting Goods Stores Hobby, Toy, and Game Stores Sewing, Needlework, and Piece Goods Stores Gambling Industries Full-Service Restaurants Limited-Service Restaurants (Fast Food) Furniture and Home Furnishings Stores - Gr. Electronics and House Appliance Stores - Gr. 2 Speciality Food Stores - Gr. 3 Drug, Health and Personal Care Stores - Gr. 4 Grocery Stores - Gr. 5 Jewelry and Luggage Stores - Gr. 6 Music and Book Stores - Gr. 7 Department and Discount Department Stores - Gr. 8 Office Supplies, Stationery and Gift Stores - Gr. 9 Telecommunications - Gr. 0 Banking, Finance, Insurance and Real Estate - Gr. Hair, Nail and Skin Care Services - Gr. 2 Travel Agencies - Gr. 3 Drycleaning and Footwear Repair - Gr. 4 Concentration index based on GLA for Montreal centers Member of a Chain Low level of prestige High level of prestige a. Dependent Variable: ln_base rent ($/sq.ft) Unstandardized Standardized Collinearity Statistics B Std. Error Beta t Sig. VIF

13 TABLE A-6 : MODEL 5 - QUEBEC CITY CENTERS WITH DETAILED CHAIN STORES CATEGORIES (REFERENCES: MEN S CLOTHING, PROVINCIAL CHAIN STORES, NEUTRAL LEVEL OF PRESTIGE) Summary Adjusted Std. Error of R R Square R Square the Estimate Regression Residual Total ANOVA Sum of Squares df Mean Square F Sig a (Constant) ln_gross leaseable area Percentage Rent Rate Shopping center weighted age taking into account expansions and additions Time elapsed since Jan. 97, in years Lease duration, in years Camera and Photographic Supplies Stores Beer, Wine, and Liquor Stores Optical Goods Stores Women's Clothing Stores Children's and Infants' Clothing Stores Family Clothing Stores Clothing Accessories Stores Other (Unisex) Clothing Stores Shoe Stores Luggage and Leather Goods Stores Sporting Goods Stores Hobby, Toy, and Game Stores Sewing, Needlework, and Piece Goods Stores Gambling Industries Full-Service Restaurants Limited-Service Restaurants (Fast Food) Furniture and Home Furnishings Stores - Gr. Electronics and House Appliance Stores - Gr. 2 Speciality Food Stores - Gr. 3 Drug, Health and Personal Care Stores - Gr. 4 Grocery Stores - Gr. 5 Jewelry and Luggage Stores - Gr. 6 Music and Book Stores - Gr. 7 Department and Discount Department Stores - Gr. 8 Office Supplies, Stationery and Gift Stores - Gr. 9 Telecommunications - Gr. 0 Banking, Finance, Insurance and Real Estate - Gr. Hair, Nail and Skin Care Services - Gr. 2 Travel Agencies - Gr. 3 Drycleaning and Footwear Repair - Gr. 4 Concentration Index based on GLA for Quebec City centers International Chain Stores National Chain Stores Local Chain Stores Independant Stores Low level of prestige High level of prestige a. Dependent Variable: ln_base rent ($/sq.ft) Unstandardized Standardized Collinearity Statistics B Std. Error Beta t Sig. VIF

14 TABLE A-7 : MODEL 6 QUEBEC CITY CENTERS WITH GROUPED CHAIN STORES CATEGORIES (REFERENCES: MEN S CLOTHING, NON-CHAIN MEMBER, NEUTRAL LEVEL OF PRESTIGE) Summary Adjusted Std. Error of R R Square R Square the Estimate Regression Residual Total ANOVA Sum of Squares df Mean Square F Sig a (Constant) ln_gross leaseable area Percentage Rent Rate Shopping center weighted age taking into account expansions and additions Time elapsed since Jan. 97, in years Lease duration, in years Camera and Photographic Supplies Stores Beer, Wine, and Liquor Stores Optical Goods Stores Women's Clothing Stores Children's and Infants' Clothing Stores Family Clothing Stores Clothing Accessories Stores Other (Unisex) Clothing Stores Shoe Stores Luggage and Leather Goods Stores Sporting Goods Stores Hobby, Toy, and Game Stores Sewing, Needlework, and Piece Goods Stores Gambling Industries Full-Service Restaurants Limited-Service Restaurants (Fast Food) Furniture and Home Furnishings Stores - Gr. Electronics and House Appliance Stores - Gr. 2 Speciality Food Stores - Gr. 3 Drug, Health and Personal Care Stores - Gr. 4 Grocery Stores - Gr. 5 Jewelry and Luggage Stores - Gr. 6 Music and Book Stores - Gr. 7 Department and Discount Department Stores - Gr. 8 Office Supplies, Stationery and Gift Stores - Gr. 9 Telecommunications - Gr. 0 Banking, Finance, Insurance and Real Estate - Gr. Hair, Nail and Skin Care Services - Gr. 2 Travel Agencies - Gr. 3 Drycleaning and Footwear Repair - Gr. 4 Concentration Index based on GLA for Quebec City centers Member of a Chain Low level of prestige High level of prestige a. Dependent Variable: ln_base rent ($/sq.ft) Unstandardized Standardized Collinearity Statistics B Std. Error Beta t Sig. VIF

15 TABLE A-8 : CHARACTERISTICS OF SHOPPING CENTERS UNDER ANALYSIS Quebec City GLA (sq.ft) Type Location Number of Leases Number of Shops Place Fleur de Lys 862,600 SR Suburban Galeries de la Capitale 827,79 SR Suburban Place Laurier,288,45 SR Central Place Ste-Foy 585,369 R Central Place de la Cité 225,458 F Central Sub-Total Quebec City: 3,789,29 pi² Montreal GLA (sq.ft) Type Location Number of Leases Number of Shops Place Vertu 909,578 SR Suburban Les Galeries Rive Nord 559,289 R Suburban Mail Champlain 75,559 R Suburban Complexe les Ailes 388,35 R Central Centre Eaton 288,056 R Central Place Mtl Trust 257,589 R Central Sub-Total Montreal : 3,8,422 pi² Total GLA 2 : 6,907,73 pi³ Total Number of Leases 2 :,744 Total Number of Shops 2 :,832. SR : Super-regional; R : Regional; F : Fashion (grouped with regional centers). 2. These figures include all leases and shops whereas, in this paper, only non-anchor tenants are considered for analysis