Peter James Hanson Miron

Although considerable effort has been placed into the development of hedonic residential real estate valuation models, the same cannot be said about retail real estate valuation models. As retail real estate valuation is concerned with the profitability of a given property, a valuation model is derived from economic consumer search and firm behavior theory. The effect of consumer characteristics, lot attributes and improvements, retail market characteristics and macro-temporal effects are subsequently assessed in an empirical model of the Greater Toronto Area excluding the City of Toronto. The empirical model is then tested for spatial, store size and temporal non-stationarity to identify areas for further empirical and theoretical development. While the stationarity tests indicate further investigation is necessary into spatial and store size differences, the models do confirm the five-factor general model specification.