Trade Area Location Selection For Commercial Real Estate Development In Taiyuan City

The commercial real estate development has been promoted by the gradually increasing level of people’s income and demand.There are lots of development links during commercial real estate development.Location selection is the dominate factor to determine the success or failure of the commercial real estate development.Possessing a favorable location means a unique competitive advantage compared with other opponents.The degree of aggregation of commercial enterprises is increasing with the convenience of transportation,the change of consumer shopping habits as well as the promotion of the market and the government’s guidance.It is the trade area rather than a shopping mall that attracts consumers.Therefore,the location selection of the commercial real estate development this paper mentioned chooses the integral trade area to research rather than the exact location.This paper pays more attention to the long-term development of the location and urban planning,not just the rent,location and other micro factors.This paper takes the trade area’s attractiveness for the developers as the breakthrough point and discussed the location selection of the commercial real estate development.Based on the literature,this paper summarized the factors of location selection,concluded 3 primary indicators and 15 secondary indicators,and constructed a set of index system of commercial real estate’s location selection which is suitable for multiple trade areas city.The primary indicators include Regional environmental conditions,trade area’s attraction and trade area’s power.The secondary indicators include Population density,Industrial structure,Per capita GDP,Per capita Disposable income,Total retail sales of social consumer goods,Scale of business enterprise aggregation,Competitive situation,Complementary advantages of format,Shopping atmosphere,Traffic Conditions,History and culture,Surrounding residents’ purchasing power,Policy Support,Expansion potential and Land cost.The empirical analysis that is based on the index system takes a medium scale shopping center as an example to make the location selection in Taiyuan city.Firstly,AHP and expert scoring were used to calculate the weight of each factor according to the actual situation of Taiyuan.Secondly,fuzzy math method was used to make a comprehensive analysis and comparison for 7 typical trade areas in Taiyuan.The conclusion demonstrates the best development location is the Taiyuan South Stationtrade area.Finally,corresponding suggestions for commercial real estate development were put forward according to the actual situation of trade areas in Taiyuan.The main innovation in this paper is evaluating the merits of trade area from an angle of commercial real estate development.In addition,the scale of business enterprise aggregation,complementary advantages of format,land expansion potential and other indicators were considered when building an indicator system in order to fully measure whether the trade area is suitable for the development of commercial real estate.Currently,the research objects of commercial real estate location selection are mainly Beijing,Shanghai and other big cities,this paper analyzed the commercial estate location in Taiyuan which can be the representative of small and medium cities.