Simon Property Group (www.simon.com) is a real estate investment company that owns premier shopping, dining, entertainment and mixed-use properties in North America, as well as Europe and Asia. It generates billions in annual sales, and it's therefore the company's priority to maintain the right mix of tenants in its properties that pay the rental prices that are just right.

The Pine Mall is a newly opened mall (this is a fictitious mall, by the way!) consists of a total area of 13.5 million square feet. Burlington and Marshalls are its anchors, and they altogether occupy 6 million square feet of space. The mall owner is planning that each in-line tenant in the mall would be paying $4.50 per year per usable square foot in common area maintenance (CAM) charges. The common areas will occupy 3.8 million square feet. The remainder is in-line tenants' ( ...........................)? square feet (use "0" for any blank values)). The landlord believes the common areas will require $6 per square foot to maintain and operate each year.

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(a) If the shopping malls owner would like to recover all CAM expenses from all tenants in the mall, the anchors would need to pay $(........................)?

round to 2 decimal places and use "0" for any blank values) every year per square foot of their usable space for the CAM charges.

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The landlord has run some numbers and figured out a couple additional figures:

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(b) First, it can charge the anchors $0.50 less in CAM charges per square foot per year, to lower the risk of them leaving for other locations. In this case, the in-line tenants would need to pay $(..............)?

(c) Second, if needed, the landlord has some flexibility in reallocating the space in the mall between the common areas and in-line tenants, as well as in adding extra common areas to the existing square footage of the mall. Assume that anchor stores' annual per square foot contribution to the CAM charges can never exceed the annual per square foot contribution by the in-line tenants. How can the square footage of common areas in the shopping mall (e.g., parking structures, food court areas, hallways, etc.) be altered in order for the anchors' annual CAM contribution per square foot to also equal $4.50? Your answer: the square footage of common areas would need to ( increase, decrease )??? by ???? (round and use "0" for any blank values) square feet, which, as a result, will affect the in-line tenants' area by the same square footage. (HINT: "Goal seek" or "solver" in Excel might be the easiest way to figure this out!)