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<br />PLANNING PRO�Ii'S cnnti:�ue�d
<br />similarly assumed $.66 gross ex-
<br />pense for Cen,ter B based on the
<br />averages for all regi�nals. The gross
<br />expenses of $.7S for C'enter C in-
<br />clude some allav�anCe for higher
<br />taxe� and other iCeans th�� may af�ect
<br />a large regional.
<br />Gr�ss receipts nrrd aver��e in��i.
<br />i�aum rents: The gro�;s receipts
<br />necessary to cover expenses, mort-
<br />�age payments and provic�e the de-
<br />sired casi� return to the developer,
<br />range frorr� $1.76 in Ce�ter A to
<br />$2.49 in Center C. However, it
<br />should be remembered that percent-
<br />age rentals repr�sent a substantial
<br />part of. the inco�ne of the center. In
<br />addition, many �xpenses such as
<br />c�mmon area maintenance, promo-
<br />tion and reaI estate tax increases
<br />may be directly charged to the ten-
<br />ants.
<br />According to the tJrban Land In-
<br />�titute survey, percentage rent and
<br />other income average $.32 ger gross
<br />square foot in community centers
<br />�nd $.4F :n regional centers over
<br />Ti�Bi:E 1 .
<br />- , :
<br />t� `�� �CC�S i � .QF :TYPIGoqI� :SHOP�lIVG . _
<br />_ c��rE�
<br />;�
<br />� � JUNlOR;' LARGE '
<br />r ' ' REG(ONAL. . l7EGIONAL : REfiiII�NAL
<br />- f � ' ' �._._
<br />C�'r�ss Leasable Ar�a (Square Feet ) 30 0 �
<br />° - ,.,; ; . , , 0 500,OOf? 800,OQ0.
<br />Land �o�t per Acre (�rlcluding ' '
<br />3� ; site �r�parati�n) $7,504 � $1�,OQ0 $25,000
<br />1 ��'^ Y� - S
<br />'�I.and �qre�, facr+�s +
<br />� , v 1:
<br />, , : ;30 �5 67
<br />� P��k�ng;Spa��s � r
<br />� ' � 2,800;-
<br />1 �: , , 4,000 5 640
<br />� ,
<br />.� �<, � �
<br />�����5 � er . , , � .i , . :,
<br />p �q��r� Foot �f ��Gross L�asa�bl� �Ar "
<br />v w �Land } ��
<br />' ._ _ �
<br />� ; , . . , $ 75 :� 1,35
<br />� Canstructi�n oncl Archi#ec�s� ` ` $ 2.10
<br />, y �. 12 00
<br />,', .: ;���s (incl. L�a�in�) � 15:00 16.50
<br />-` � . , . . , �� 1.00 1.00 1.50
<br />... �, ;
<br />Totat Cost per Square Foot � �
<br />' �-� : , ;a , � � �13 75 $17.�5
<br />;�'� .�����' at �8� g � ; �, $20.10
<br />«. , /o ,;
<br />, , .,._., , �. ����
<br />�� �l�i oo �;�
<br />�,4 :, :: � ..�� =��� �,�� , � � _ , .. . �� : � ,
<br />,; .. ;
<br />` Wner s,�quity` , , , .$14.00 $16.02 .
<br />' � 2' 75
<br />T"� i� i� �`4 .'�_ r t 4 .
<br />, , 3.35
<br />�nter��� ,�- � 4.�8
<br />� rt,d Amorfirzaiion� � a
<br />C� . �;: - ,�� ';�; ` ; ' < -. � �:946., _ :
<br />�h R�tu�n� 3-2,� $< 1.0�5
<br />,
<br />� �.... � . ( .: . . :��f� E � . . � . ` � 1.
<br />�. u�t 234
<br />_ , f � ,. „ � ;� , �q Y)..;
<br />,
<br />_... . ... .... � .. ._ , .3�44 , .4.19
<br />,_ > ,
<br />:. , ::; ;
<br />. .... .
<br />Necess�ry Uperatiing Balance , ., _ . . . ,,. .51
<br />� � � 1.29 C
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<br />��yt������ rY s Receipts _
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<br />... .. . ..,. . � .. . . _ i .It . ... .. ... ,. .�. �_ ... . - , . _ . . ..:,.._... . .. .....
<br />. C7 � . _
<br />r .. C� .
<br />.; .. . a< . _., _ , . ,. . . ., . . . , , _ ,
<br />i . 'A . � . �. . i}�{�� . e A _'r.. ... . . : �: i . . . . �...., . ..,. .:; � . . .. . . .
<br />S . .�..r. .. �: ., �. . .- . ... .._ .._�,. .. '.�... . :i.. .�.. .. .. ,..
<br />:. . `� . _..r. . .. . -�z . ..:, . � �._ . _._ , � .+e . . .. �.. .. . . ....,.. ...:. . .... . � . �. _.,.: _..- . :,
<br />.����_.�,,...a�`N�.� � �.�:r.,M.. .3. ..rF�„����:a. t,..,_,.�_ �i..__.�'i1BC_�11�nma,..� . _.a ....... ...... .�.._ ,. ,__ .. . _, ... ._. . . . ._ .., .. . _ ,_
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<br />. �,
<br />Desirable Average fV�ir�irn�� Rent�als
<br />:� ,.r�u�...�._..__
<br />1'8
<br />,_ _ . �_.,....-_
<br />{ _ _.
<br />:
<br />1.44 $ 1.70 � 2.00
<br />� �fr� i)....':1 f5 ;-
<br />r
<br />„ `,`'` ! . , , �,g:;� t.�w,_a .�;. f . ,.. .,_ , _ . . , .
<br />SHOPP�N� CENTER AGE, JUNE 1963
<br />.
<br />0
<br />the first eight years of operatio.n.
<br />Ded�cting �these averages from the
<br />necessary gross re�eipts, gives us
<br />the desirable av�rage of minimum
<br />rentals. This average is at $1.44 per
<br />square foot in Center A; $1.70 in
<br />Center B; and $2.00 in Center C.
<br />■ The Urban Land Ins�titute survey
<br />covered the 1959 or earlier results
<br />of the shopping centers sampled.
<br />1 he figures as analyzed acc�rding
<br />to the �age of the center showed ver�
<br />striking �trends. The minimum ren-
<br />tals in community centers operat;ng
<br />for one or two years were substan-
<br />tially higher than in �the older cen-
<br />ters (see 'Table 2). On the other
<br />hand, percentage r.ents tended to
<br />increase s�teadily with the number
<br />of years of aperation of tlle cent�r.
<br />These percentage rents averaged
<br />onl}� $.07 per gross square foot in
<br />centers opened one to two years;
<br />rose �to $.2C in the three to four year
<br />class; and .�.40 in the five to eight
<br />year class and even higher for cen-
<br />ters operating more than eight y�ars.
<br />Similar trvnds were apparent in the
<br />sample of regional centers.
<br />Expenses also tend to varq ac-
<br />cording to the age of the center.
<br />Most notable was the incr.ease in
<br />re�l estate taxes and also in mainte-
<br />nance and housekee�ing costs.
<br />For the purpos�es of our calcula-
<br />tion we have averaged both percen-
<br />age r�nt and other income, and sim-
<br />ilarly �average� operating expenses
<br />for al: c�nters operating eight year�s.
<br />While the�e a��erages are reasonable,
<br />Xhe iremendous ��ariation in the
<br />c ' us
<br />, om onents resents an obvio
<br />P P
<br />ro o ni in assess-
<br />p blem to be rec g zed
<br />�
<br />�
<br />in an r icular nter.
<br />� a t ce
<br />� ..
<br />g YP
<br />■ The tenants of the shopping cen
<br />tex may be divided into two broad
<br />classes:
<br />l. The larger key stor�es such as
<br />department stores, variety stores
<br />and supermarkets who serve as the
<br />main trafi'i� generators in the shop-
<br />ping center, but pay relatively 1ow
<br />minimum rentals.
<br />2. Other stores and services who
<br />depend in considerable measure on
<br />th� shopping centec's �raffic and
<br />pay. higher than average rentals.
<br />C�NTIMUED
<br />SHOPPING CENTER AGE, SUNE 1963
<br />Ta��� a ' � _
<br />GROSS INCOM�F AND EXPENSES� OF
<br />SHOPPING CENTERS
<br />(Per Square Foot of Gross Leasable Area�
<br />CENTERS OPERATING FOR:
<br />1•2 3�4 5•�
<br />COMMUNITY CEIdTERS YEARS YEARS YEARS
<br />Fixed Rent $1.42 $1.27 $1,28
<br />Perce�tage Rent .07 .20 .40
<br />Other Income .05 .05 .04
<br />AVERA6E
<br />FIRST 8
<br />YEAR�
<br />$1.31
<br />.27
<br />.05
<br />Tofial: Gross Receipts 1.54 1.52 1.72 1.63
<br />Real Estate Taxes .17 .21 ,21 ' a.20
<br />. . � . . � � . . T . .
<br />Maintenance and Housekeeping .05 ' .10 .13 .10
<br />Generai and Administrative .10 .09 .13 .11
<br />Other Expenses .Q5 .06 .06 .06
<br />Total: Operating Expense .37 .46 .53 .47
<br />Balance After O�erating
<br />Expenses $1.17 $i.06 $1.i9 $1.16
<br />CENTERS OP�RATIF�G FOR: 'AVERAGE
<br />'-1-3 ���, 4-6 � 7 YRS. � FIRST`�8 �
<br />REGEONAL CENTERS YEARS YEARS &.OVER = YEARS
<br />e � 1.59 1.50 , 1.63 1:57.
<br />Fixed R nfi _ $ $ $ $ ,
<br />4
<br />Percenta e Rent . .15 ,36 .56 .33
<br />�
<br />Othe� Income .13. .17 .09 , < .13
<br />Totai: Gross Receipts 1.87 2.03 2.28 2.03
<br />'6 � .2
<br />V ,
<br />Tax 20 30 : 2
<br />; ea E ate es ,
<br />: ;``
<br />, , R I_ 5t _ . . _ , . `
<br />_ _ _ $
<br />_ � . �. _ $ ..
<br />,. .:
<br />1 : . �.:;Z :20 . ;
<br />` � •I�aintenance�and Housekeeping , .15 ,,. ,, 8, , .�
<br />'' � .
<br />` era nd � dr�inistrative � � .12 -.� .],1. ., � ;.19 - �. :13
<br />� � Gen I a A
<br />Other Expenses ' .. . Q5 09 .. , .QE 07 ;
<br />` : Total: Onerating Expense .52 .68 .8� .65
<br />. ,. . ,. . .,,... � __ ._, . .._.. , �..., .. . , ... �.._ �.... _�. ._.W ��r�..... s ._. , . «, . .�. ��, �
<br />Ba�lance After Operating
<br />Expenses
<br />$�.35 �9.35 � $1.45
<br />< � :;
<br />r b �
<br />� k
<br />. ... . ... ar �.t. ;"..
<br />$1.38
<br />19
<br />
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