Good morning everyone,
I'm new into the real estate space and I'm preparing for the interview season (EU here, completely different timeline).
I came across the following question in the IB section of the forum and I'm not sure about the correct answer, assuming we have two identical shopping centers (same location…etc), is it worth more the one with a big anchor grocery store or the one with 5/6 smaller stores?
I'd say that the latter is worth more since it should guarantee a higher average NOI and occupancy rate on average (I'm thinking the shopping center like a portfolio) on the other hand this may imply higher property management fee.
Is this answer that I'd have given reasonable?
Thanks in advice