MODELING DETERMINANTS OF SHOPPING CENTER RENT IN AKURE, NIGERIA

Abstract

Shopping centers are said to have special qualities compared to other property investments which make investors have large appetite for them, in that they usually have high level performance in terms of return. However, in some situations where some factors come to play, shopping centers may not give the expected level of performance. Thus this study focuses on these factors that influence the rent on shopping centers in Akure, Ondo State, Nigeria. The study shows the interaction between the varying factors with the view of evaluating the effect on shopping center rent. Data were collected by administering questionnaire to tenants/occupants of fifty seven (57) shopping centers within the selected area where shopping centers are concentrated in Akure and to registered Estate Surveyors and Valuers Firms within Akure. Data were analysed using descriptive statistics, correlation and regression analysis. The result of the analysis showed that demand has a positive effect on supply of shopping center i.e. when there is an increase in the demand of shopping space, there is also an increase in its supply. While the vacancy has a negative effect on supply. Level of sales, previous rent, supply, vacancy and demand of shopping space are major factors that significantly affect shopping center rent.