I observed that the rental rates for retail properties varies with the size of the property. Smaller the property higher the rental rates. For example see below the rates for various sized spaces at the Southgate Mall in Yuma, AZ. All rates are NNN
31,000 SF $14.00/SF/Year Anchor
52,000 SF $11.50/SF/Year Anchor
25,000 SF $15.00/SF/Year Anchor
700 SF $36.00/SF/Year Regional Center/Mall
I saw another property on Loopnet that is an ex Walmart center. The size is 135,000 SF and the rental rate id $6.00/SF/Year.
I’m wondering why such a huge disparity. Can anyone throw some light on this?
Thanks.