Summer 1993 Edition of Property Valuation Monitor

Condensed Review of: Shopping Center, Appraisal and Analysis

by Vernor & Rabianski
Published by the Appraisal Institute

IF YOU'VE EVER wondered how to take, make, but not fake a better guess at future income estimates; or how to determine the optimum size or shape for retail space; or how much parking really is enough; then the book Shopping Center is for you.

In it, the authors present information about various categories of shopping centers. They include size, major tenant type, product-type sold, and distance covered by patrons as major determinants. The major categories are based on size and maximum driving times of patrons and include (from largest to smallest): The Super-Regional Center, The Regional Center, The Community Center, The Neighborhood Center.

Specialty centers include: The Festival Center, The Fashion Center, The Off-Price or Outlet Center, The Power Center (tri-anchor or greater), The Hypermarket (sells food, drugs, and general merchandise under one roof), and The Warehouse Club (bulk and big box items).

Investor risks, according to authors, include the changing economy and demographics. To reduce over-speculation investors use saturation benchmarks: the ratio of total Gross Leasable Area (GLA) of retail space to the population within a given market area.

With few exceptions, the authors, as promised, present a comprehensive and understandable guide to practical shopping center valuation. If for no reason other than the book is stocked with sound words and advice, ("Read all the leases", and "Any store size is all right, if it is not too big".) perhaps, then you ought to shop for this one. Ironically, you won't find it at the shopping center though -- only mail order.

The book above is available on-line at Amazon Books.

The author of this review, Stephen Traub, ASA, is Chief Commercial Appraiser for Property Valuation Advisors, Newburyport, MA. He is a certified general appraiser in NH, ME and MA. He can be reached at (978) 462-4347 or by e-mail at:

Other articles in this first issue (Summer of 1993) of PVM include: A Wish List of Users of Appraisals; Purpose of PVM; Commercial Mortgage Survey; Northern New England Vacancy Survey; Notes:.

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