As a retail developer you have acquired land next to an existing shopping center and are seeking financing for a second Center. Your lender is very skeptical, but you argue that the existence of a center at a location does not mean that this site is a poor choice for developing an additional new center.
a. Using retail market concepts, carefully explain, generally, when doubling the square footage of retail space at a particular location should lead to (more than/less than) a doubling of retail sales in the area?
b. As a lender what would you propose that the developer do in the way of gathering data to prove his case, configuring the center and insuring its success?