Price Assessment of Retail Real Estate

A mall operator was interested in assessing the supply and demand for retail real estate across the main shopping malls and shopping souks in Lebanon. On the supply front, the client wanted to investigate the rental rates charged, rent evolution for the past five years, the facilities / services provided, footfall, and the leasing terms. On the demand front, they want to assess the preferences of retailers with regards to the retail mix, outlet sizes, facilities / services provided, and any issues which they considered problematic at their current location. InfoPro to meet the objectives of the study conducted in-depth interviews with 58 retailers that were present in Le Mall (Sin El Fil), City Mall, Beirut Souks, Beirut Mall, Verdun 732, and Verdun 730, in addition to retailers located in prominent shopping souks such as Downtown, Verdun, Hamra and Kaslik. The study covered outlets across a variety of categories such as clothes, shoes, accessories, entertainment, gadgets, electronics, restaurants and cafés, make‐up and body care products. The information was categorized according to the location of the outlets in shopping malls and main retail areas in order to capture price variations. InfoPro selected outlets that were located on different floor levels, in proximity to anchor stores, near the entrance, near the food court etc. InfoPro also conducted interviews with retail real estate experts who were able to provide a general overview of the retail real estate scene. The findings helped management re-assess their leasing strategy and retail mix.