IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v16n11998p1-14.html
   My bibliography  Save this article

A Simultaneous Model and Empirical Test of the Demand and Supply of Retail Space

Author

Abstract

Much of the burgeoning distress of the 1990s in the United States retail space markets reflects a growing mismatch in the amount and location of retail space demand and supply. Understanding the demand and supply for retail space is critically important to academics, professionals and others associated with owning, operating and financing retail space. Using data from nineteen major metropolitan statistical areas (MSAs) for the period 1986-95, this article develops a simultaneous model of retail space demand and supply which includes the influence of vacancy rate. The model and results provide evidence about how demand and supply for retail space respond to changes in retail sales, rental prices, land-use regulation and land availability, and the cost of capital. The results show inelastic price elasticities of demand and supply for retail space.

Suggested Citation

  • John Benjamin & G. Donald Jud & Daniel T. Winkler, 1998. "A Simultaneous Model and Empirical Test of the Demand and Supply of Retail Space," Journal of Real Estate Research, American Real Estate Society, vol. 16(1), pages 1-14.
    • Handle: RePEc:jre:issued:v:16:n:1:1998:p:1-14
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol16n01/v16p001.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Benjamin, John D & Jud, G Donald & Winkler, Daniel T, 1995. "An Analysis of Shopping Center Investment," The Journal of Real Estate Finance and Economics, Springer, vol. 10(2), pages 161-168, March.
    2. Stephen Malpezzi, 1994. "Housing Prices, Externalities, and Regulation in U.S. Metropolitan Areas," Wisconsin-Madison CULER working papers 94-08, University of Wisconsin Center for Urban Land Economic Research.
    3. Mark J. Eppli & John D. Benjamin, 1994. "The Evolution of Shopping Center Research: A Review and Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 5-32.
    4. Stephen E. Roulac, 1994. "Retail Real Estate in the 21st Century: Information Technology + Time Consciousness + Unintelligent Stores = Intelligent Shopping? NOT!," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 125-150.
    5. Rose, Louis A., 1989. "Urban land supply: Natural and contrived restrictions," Journal of Urban Economics, Elsevier, vol. 25(3), pages 325-345, May.
    6. G. Donald Jud & John D. Benjamin & G. Stacy Sirmans, 1996. "What Do We Know about Apartments and Their Markets?," Journal of Real Estate Research, American Real Estate Society, vol. 11(3), pages 243-258.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert Thompson & Sotiris Tsolacos, 2000. "Projections in the Industrial Property Market using a Simultaneous Equation System," Journal of Real Estate Research, Taylor & Francis Journals, vol. 19(2), pages 165-188, January.
    2. Hermansson, Cecilia & Lundgren, Berndt, 2022. "What factors matter in rent negotiations? Differences in views between landlords and retail trade tenants," Working Paper Series 22/9, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    3. Weifeng Guo & Xiangmin Zheng & Fang Meng & Xiaonan Zhang, 2019. "The Evolution of Cultural Space in a World Heritage Site: Tourism Sustainable Development of Mount Wuyi, China," Sustainability, MDPI, vol. 11(15), pages 1-17, July.
    4. Chris Brooks & Sotiris Tsolacos, 2000. "Forecasting Models of Retail Rents," Environment and Planning A, , vol. 32(10), pages 1825-1839, October.
    5. Jonathan Wiley & Justin Benefield & Ken Johnson, 2010. "Green Design and the Market for Commercial Office Space," The Journal of Real Estate Finance and Economics, Springer, vol. 41(2), pages 228-243, August.
    6. Kim Hin David Ho & Satyanarain Rengarajan, 2017. "Industrial Real Estate Market Dynamics in Singapore: A VAR Approach," International Real Estate Review, Global Social Science Institute, vol. 20(4), pages 417-450.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beth Wilson & James Frew, 2007. "Apartment Rents and Locations in Portland, Oregon: 1992 – 2002," Journal of Real Estate Research, American Real Estate Society, vol. 29(2), pages 201-218.
    2. John Benjamin & G. Donald Jud & Daniel T. Winkler, 1998. "The Supply Adjustment Process in Retail Space Markets," Journal of Real Estate Research, American Real Estate Society, vol. 15(3), pages 297-308.
    3. Darcy Rollins & Alicia Sasser & Robert Tannenwald & Bo Zhao, 2006. "The lack of affordable housing in New England: how big a problem?: why is it growing?: what are we doing about it?," New England Public Policy Center Working Paper 06-1, Federal Reserve Bank of Boston.
    4. Kanis Saengchote & Voraprapa Nakavachara & Yishuang Xu, 2023. "Capitalising the Network Externalities of New Land Supply in the Metaverse," PIER Discussion Papers 203, Puey Ungphakorn Institute for Economic Research.
    5. Michael J. Hicks, 2006. "Transportation and infrastructure, retail clustering, and local public finance: evidence from Wal-Mart's expansion," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 100-114.
    6. Qiulin Ke & Michael White, 2015. "Retail rent dynamics in two Chinese cities," Journal of Property Research, Taylor & Francis Journals, vol. 32(4), pages 324-340, December.
    7. François Ortalo-Magné & Andrea Prat, 2005. "The Political Economy of Housing Supply," Levine's Bibliography 122247000000000954, UCLA Department of Economics.
    8. Kanis Saengchote & Voraprapa Nakavachara & Yishuang Xu, 2023. "Capitalising the Network Externalities of New Land Supply in the Metaverse," Papers 2303.17180, arXiv.org.
    9. Monkkonen, Paavo & Quigley, John M., 2008. "The Spatial Consequences of Autarky in Land-Use Regulation: Strategic Interaction or Parallelism?," Berkeley Program on Housing and Urban Policy, Working Paper Series qt69p752cd, Berkeley Program on Housing and Urban Policy.
    10. Johnson, William R., 2014. "House prices and female labor force participation," Journal of Urban Economics, Elsevier, vol. 82(C), pages 1-11.
    11. Qiu, Chun & Zhao, Ping, 2019. "Mobile coupon acquisition and redemption for restaurants: The effects of store clusters as a double-edged sword," Journal of Business Research, Elsevier, vol. 103(C), pages 163-172.
    12. John D. Benjamin & G. Stacy Sirmans & Emily Norman Zietz, 1997. "Security Measures and the Apartment Market," Journal of Real Estate Research, American Real Estate Society, vol. 14(3), pages 347-358.
    13. Jeffrey E. Zabel & Robert W. Paterson, 2006. "The Effects of Critical Habitat Designation on Housing Supply: An Analysis of California Housing Construction Activity," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 67-95, February.
    14. Mark J. Eppli & Steve P. Laposa, 1997. "A Descriptive Analysis of the Retail Real Estate Markets at the Metropolitan Level," Journal of Real Estate Research, American Real Estate Society, vol. 14(3), pages 321-338.
    15. Edward L. Glaeser & Joseph Gyourko & Raven E. Saks, 2006. "Urban growth and housing supply," Journal of Economic Geography, Oxford University Press, vol. 6(1), pages 71-89, January.
    16. Michael Ball, 2011. "Planning Delay and the Responsiveness of English Housing Supply," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 349-362, February.
    17. Nigel Stapledon, 2012. "Trends and Cycles in Sydney and Melbourne House Prices from 1880 to 2011," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 52(3), pages 293-317, November.
    18. Bartłomiej Marona & Anna Wilk, 2016. "Tenant mix structure in shopping centres: some empirical analyses from Poland," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(2), pages 51-65.
    19. Frederic S. Mishkin, 2007. "Housing and the monetary transmission mechanism," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 359-413.
    20. Colin Jones, 2017. "Spatial economy and the geography of functional economic areas," Environment and Planning B, , vol. 44(3), pages 486-503, May.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:16:n:1:1998:p:1-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JRER Graduate Assistant/Webmaster (email available below). General contact details of provider: http://www.aresnet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.