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ORIGINAL ARTICLE
LEASE PRICE DIFFERENTIATION AND ITS INFLUENCE ON THE
ATTRACTION OF MICRO, SMALL AND MEDIUM ENTERPRISES’
(MSMES) TO MAJOR SHOPPING MALLS IN ZAMBIA
1
Department of Real Estate Studies, The Copperbelt University, Zambia
2
Department of Urban and Regional Planning, The Copperbelt University, Zambia
3
Northmead Branch, Palmridge Properties, Zambia
Submission date: 2021-05-26
Final revision date: 2021-07-08
Acceptance date: 2021-08-09
Online publication date: 2021-09-30
Publication date: 2021-09-30
Economic and Regional Studies 2021;14(3):358–372
KEYWORDS
TOPICS
ABSTRACT
Subject and purpose of work: Based on community-wide charges that shopping malls
discriminate against small business tenants, this paper seeks: firstly to identify the principal
determinants of shopping mall rentals, and secondly to understand if there exists a statistically
significant dispersion in rentals against MSMEs. Materials and methods: Relative Importance Index and SPSS (statistical tests) were used to
analyze the survey-based data which was acquired from eleven shopping malls in Lusaka. Results: The MSME tenants pay on average $20.32/m2 more t han anchor tenants and $19.12/m2
more than chain stores, ironically on account of capital limitations. MSMEs also face an additional
risk during sudden economic shocks due to untenable lease provisions and poor negotiating
influence. Conclusions: The study concludes by acknowledging that the MSME sector is covertly vitiated
by the imposition of high rental premiums. It recommends that shopping malls should have
an affirmative simpler letting policy. Furthermore, a shopping mall association should-be
commissioned to exclusively safeguard the interests of MSMEs.
PEER REVIEW INFORMATION
Article has been screened for originality
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