Korpacz Mall Classification Methodology 2015

Korpacz Realty Advisors, Inc.
Litigation, Valuation & Counseling

2015 Regional Mall Classification Methodology Study
Mall Classification Methodology
Determining an appropriate classification for a regional mall is a two-step process. The first step is to compare the inline mall sales generated by the mall to the classification survey based on retail sales performance. The second step is to consider adjusting the classification for other subject property attributes.
Step 1 –
By way of example, if a regional mall had inline retail store sales declining from a high of $350 per square foot in 2013 to $322 per square foot in 2015, it would be classified based on Step 1 as follows according to the Korpacz Realty Advisors, Inc. Mall Classification Survey.
Year

Sales Per Sq. Ft.

Mall Class

2013
2015

$350
$322

B
C+

REGIONAL MALL CLASSIFICATION CONCLUSIONS
In-line Retail Sales Per Square Foot
Mall
Classification

As of 1/1/13

As of 1/1/14

As of 1/1/15

Trophy
A+
A
B+
B
C+
C
D

-$625 and up
$475 to $624
$400 to $474
$325 to $399
$275 to $324
$250 to $274
Less than $250

$800
$650 and up
$500 to $649
$425 to $499
$325 to $424
$275 to $324
$250 to $274
Less than $250

$800 and up
$650 and up
$500 to $649
$425 to $499
$325 to $424
$275 to $324
$250 to $274
Less than $250

Retail sales are for reporting inline tenants that were in occupancy for an entire year on a rolling 12month basis divided by the GLA for those tenants. Inline mall stores include stores less than 10,000 square feet (including restaurants), but excludes temporary tenants and restaurants over 10,000 square feet and excludes Apple stores.
Source: Korpacz Realty Advisors, Inc. survey was conducted by Peter F. Korpacz, MAI, CRE, FRICS

1

Korpacz Realty Advisors, Inc.
Litigation, Valuation & Counseling

Step 2 In certain situations the mall classification in Step 1 may be adjusted for both positive and negative subject property attributes. As the mall classification declines, some of the negative