1. Simon Property Group

1. Simon Property Group (www.simon.com) is one of the largest real estate companies in the world which in particular owns hundreds of shopping centers in the US as well as overseas.

(a) Pick one of their shopping centers in California. On the website find and summarize in your write-up information for:

– Mall type

– GLA

– Main anchors

– Size of trade-area resident population and examples that the website gives of residential communities

– Size of trade-area non-resident population and examples that the website gives

– Main competitors in the trade area that the website gives

(b) Using “Reilly’s Law of Retail Gravitation” calculate the break-point distance for your shopping center in part (a) relative to the nearest Simon Property Group shopping center. Use GLA sizes for “populations” in the formula. What does the result tell you? Explain.

<pclass=”msolistparagraphcxspfirst” style=”box-sizing: border-box; font-family: Roboto, sans-serif; font-size: 16px; background-color: rgb(255, 255, 255);”>2. For Los Angeles metropolitan statistical area calculate the Actual Sales Index for personal care products and services based on the most recent available data. For the data use the US Census’ FactFinder “Advanced Search”, select the right geographies and the right NAICS retail category. In addition, for Los Angeles metropolitan statistical area calculate the Spending Potential Index for personal care products and services for the same year. For the data go to the Bureau of Labor Statistics website, in the search line type “Consumer Expenditure Survey”. On the new page under “geography” you can then find data for the right geography.</pclass=”msolistparagraphcxspfirst”>

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Do your results suggest “leakage” or “inflow” of consumer spending in Los Angeles MSA? Explain.