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As a retail developer you have acquired land next to an existing shopping center and are seeking financing for a second Center. Your lender is very skeptical, but you argue that the existence of a center at a location does not mean that this site is a poor choice for developing an additional new center.

a. Using retail market concepts, carefully explain, generally, when doubling the square footage of retail space at a particular location should lead to (more than/less than) a doubling of retail sales in the area?

b. As a lender what would you propose that the developer do in the way of gathering data to prove his case, configuring the center and insuring its success?

Operation Management, Management Studies

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