Valuation of Shopping Centers - Research Paper Example

rom the fact that investment behaviours in shopping centres have been changed due to dramatic progress in the retail industry of Germany and it can be explicitly understood from the fact that until 2011 Germans were dominating investors in the market. However, now German retail industry has largely attracted foreign investors accounting for 62% overall investment in the retail market. Due to the desired aim of maximizing profits, owners of retail properties hire professional companies to evaluate the properties accurately by taking different criteria into consideration.

However this is a complex and difficult task, especially with high investments like shopping centres. The real estate crises has shown what impact wrong valuations can have. This is why it is important that the valuation process is done correctly and with caution. The aim of this paper is, next to an introduction of the shopping centre market, the general definition of shopping centres, the different classification types and the historic development, to answer the question what factors influence the market value of a property.

In this context, the meaning of valuation will be discussed, followed by an analysis of different factors incluencing the value. In order to link the theoretcial approach with practical experience these factors will be anaylsed by means of project made during an internship at Jones Lang LaSalle in Frankfurt in summer 2012. Additionally, the project will be briefly described and the outcome of the valuation will be mentioned. Trends of shopping centres are continuously changing since the development of shopping centres’ phenomenon among masses.

Researchers have suggested that with the passage of time and emerging technologies it has been noticed that trends of shopping and shopping centres are gaining much attention (Coleman, 2012, pp. 6-105). Business of shopping centres is successfully going with growing populations’ needs and increasing social awareness. Intellectuals