RT Journal Article
SR Electronic
T1 Stand-Alone Centers Occupied by Big-Box Retailers
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 124
OP 133
DO 10.3905/jpm.2005.593895
VO 31
IS 5
A1 James D. Shilling
A1 Tammie X. Simmons-Mosley
A1 Stephen F. Thode
YR 2005
UL https://pm-research.com/content/31/5/124.abstract
AB Investments in stand-alone centers occupied by big-box retailers do poorly as a hedge against changes in the variables that generally matter to institutional investors. The reason is structural. Big-box retailer leases often include a go-dark option allowing the retail tenant to vacate its space before expiration of the lease. This tends to occur under high inflation (and hence the big-box retailer cash flow growth rate is high) and under high uncertainty, exactly the conditions under which institutional investors most need high returns