Patronage as a Determinant of Rental Values of Shopping Malls: A Case of Ibadan, Nigeria

Abstract

The proliferation of shopping malls in virtually all economics of the world both that of the developed and developing ones can be linked to its patronage. This patronage which is gradually causing the loss of grip of the traditional market setting has been studied in line with gender, age, income, location, the image of the malls and type of shoppers amongst others. Due to the modern outfit and patronage, tenants of the malls have to be prepared for its rental payments. However, no study has specifically linked the patronage of malls with such. Therefore to achieve this aim two shopping malls located virtually in the same place were studied; the cocoa mall and heritage mall Ibadan. The study which is a cross-sectional survey entailed the distribution of copies of questionnaires to the tenants, interview with the manager of the malls and observation of frequency of shoppers to the malls. Data obtained were analyzed using the Chi-Square test of significance at 95% confidence level and it was revealed that the patronage of the malls is associated with its rental values. The researchers hereby opine that since it appears that much patronage tends to increase rental values of malls, managers are encouraged to ensure that they enhance their patronage to enjoy a marginal increase in rental payment. This will also be beneficial to tenants going by the enhanced economic returns evident in a higher occupancy rate.