Quadrant #4: Explicit Time + Explicit Space

Shopping Malls
Industry website: http://en.wikipedia.org/wiki/Shopping_mall

Industry overview:
Companies that own retail property sell their space and time explicitly. Retailers that want to rent space need to sign leases for a specific amount of time and pay for space according to square footage and type of product/service. Contracts range from short-term leases with a minimum of 3-6 months to long-term leases. Costs for space also depend on the desirability of the location within the property. In addition, space for kiosks and carts are available to rent.

Four industry examples:

Westfield Group (http://westfield.com/uscentres/?redirect=no)

The Westfield Group owns and operates high-quality shopping centers in the United States, Australia, New Zealand, and the United Kingdom. The company is the world's largest listed retail property group with 119 shopping centers, valued at more than $60 billion. Westfield manages every aspect of shopping center development including design, construction, management, and marketing. Around 23,000 retailers have stores in the company's shopping centers. Westfield prices space by square footage and duration by number of months and years.

Dubai Shopping Malls Group (http://www.dsmgdubai.com)

The Dubai Shopping Malls Group currently owns 35 malls throughout Dubai. Under the guidance of the Dubai Economic Department, the group was formed to leverage marketing initiatives and provide better service to customers. Malls in the portfolio include Souk Madinat Jumeriah, Century Mall, and Palm Strip. Dubai Shopping Malls Group prices space and time explicity. The company charges by square footage and the number of months and years.

Chelsea Property Group (http://www.cpgi.com)

Chelsea Property Group is the world's largest owner, developer, and operator of upscale outlet centers. The company's portfolio currently consists of 49 outlets in the United States, Japan, Korea, and Mexico. At the end of 2008, 99% of the company's retail space was leased, generating same space sales of $513 per square foot. Chelsea Property Group bases its pricing by the amount of square footage and lease duration.

Takashimaya Co. Ltd. (http://www.takashimaya.co.jp/corp/english/index.html)

Takashimaya Co. Ltd owns a Japanese department store chain with outlets in Japan, Singapore, Taiwan, Paris, and New York. The department store carries a wide array of products from apparel to cookware to wedding dresses. For 2006, Takashimaya was listed as #1197 on the Forbes Global 2000 list. Takashimaya defines prices explicity based on square footage of space and the duration of leases.