RENTAL

ASPECTS OF MALL MANAGEMENT

1. Accesibility

The site should be easily accessible by automobile and within walking distance of some
potential users.

2. Visbility

A highly visible site along a major street with easy accesibility is deal.

3. Demographic patterns

The mall should be located in an area which consists of the population that forms a large
percentage of the target population.

4. Site Capacity

The site should be large enough to provide a sufficient covered area.

5. Competition

The location of the mall should be such that it should neither face extreme competition.

6. Legal Matters

The chosen location must also satisfy legal considerations regarding fire regulations,
licenses to operate, the area that can be built upon, etc.

7. Utilities Availability

To avoid extra costs the presence of electrical, water, gas, sewer, and other services should
be in place now.

a) Tie-breaker criteria factors

b) Any acquisition costs

c) Demolition costs of any existing facilities on the site

d) Relocation costs of any existing business or residents currently on the site

e) Any unsual site development costs that may occur, such as from a site with underground utilities
and/or water

f) The cost of providing sufficient utility service to the site

g) Transportation: The location must also consider the availability of transportation facilities
MALL MANAGEMENT - consider shopping malls as “retail” business.

1. Tenants

2. Anchor tenant

3. Specialty retailers

4. Multiplex

5. Food court

LINCENSE MODEL

 Revenue from rents

Lesser risks

Medium term investment (low risk/ medium returns)

 Some control over mix and therefore the shopper

 Some ability/flexibility and incentive to improve

Stage 2

 Revenue share model

 A common practice in developed markets

 Few early adopters in PH

MARKET STRUCTURE
Market structure, in economics, refers to how different industries are classified and differentiated
based on their degree and nature of competition for goods and services. It is based on the
characteristics that influence the behavior and outcomes of companies working in a specific
market. In simple, it refers to how different industries

FACTORS

 Number of buyers and sellers

 Ability to negotiate

 Degree of concentration

 Degree of differentiation of products

 Ease or difficulty of entering and exiting the market

TYPES OF MARKET STRUCTURE

1. Perfect Competition

2. Monopolistic Structure

3. Monopoly

4. Oligopoly

PERFECT COMPETITION

- it occurs when there is a large number of small companies competing against each other.

Example: Situation
MONOPOLISTIC COMPETITION

- It refers to an imperfectly competitive market with the traits of both the monopoly and competitive
market.

Examples:

Clothing shop

Gas Station

Grocery Stores

Athletic wear

Fast food restaurant

Business supply stores

Home supply stores

Pet foods

OLIGOPOLY

It consists of a small number of large companies that sell differentiated or identical products.

SITUATION: If one of the actors decides to reduce the price of its product, the action will trigger other
actors to lower their prices, too.. On the other hand, a price increase may influence others not to take any
action in the anticipation consumers will opt for their products.

EXAMPLES:

Technology industry

Media industry

Automobile industry

Pharma sector
MONOPOLY

In a monopoly market, a single company represents the whole industry. It has no competitor, and it is the
sole seller of products in the market.

FACTORS:

Sole claim to ownership of resources

Patent and copyright

Licenses issued by the government

High initial setup cost

EXAMPLES:

Railways

Luxxotica

Microsoft

AB InBev

Google

Patents

AT&T

Facebook