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The urban economics of retail

Author

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  • Ossokina, Ioulia V.
  • Svitak, Jan
  • Teulings, Coen N.

Abstract

Using property-level data from 327 larger shopping areas in the Netherlands, we show that the spatial structure of a shopping area resembles a monocentric city in miniature. Just like a monocentric city, a shopping area has a pronounced centre where the rents are the highest and the vacancy the lowest, and a negative retail rent gradient from this centre to the edges. The average retail rent gradient is −17% per 100 m distance, and the vacancy is one and a half times higher at the edge than in the centre. Our model gives insights into how shopping areas respond to downfall in demand, both in the short and long run. Our data, covering the Great Recession, from 2009 to 2012, lend support to these predictions.

Suggested Citation

  • Ossokina, Ioulia V. & Svitak, Jan & Teulings, Coen N., 2024. "The urban economics of retail," Regional Science and Urban Economics, Elsevier, vol. 108(C).
    • Handle: RePEc:eee:regeco:v:108:y:2024:i:c:s0166046224000504
    DOI: 10.1016/j.regsciurbeco.2024.104026
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    1. Koster, Hans R.A. & Pasidis, Ilias & van Ommeren, Jos, 2019. "Shopping externalities and retail concentration: Evidence from dutch shopping streets," Journal of Urban Economics, Elsevier, vol. 114(C).

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    More about this item

    Keywords

    Land market competition; Retail; Rent gradient; Vacancy; Transformation;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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