In a retail shopping center the factors of leasing are critical to property performance. Retail tenants can come and go from a property and on that basis can dramatically impact property income. The property manager should have advanced leasing skills to solve the rental an income issues well in advance wherever possible.
As a shopping center ages or perhaps as the demographic of the shoppers and customers to the property change, the leasing strategies and the tenant mix should also be adjusted. Other pressures can also occur through competing properties nearby taking tenants or new property developments taking customers. So the leasing skills of a retail shopping center manager should be advanced and directed to help with property performance and in lowering vacancy pressures.
Here are some of the critical skills for a shopping center manager or property manager to develop today:
- Lease interpretation – In a single property there can be many different types of leases with unique critical dates and occupancy circumstances. Every lease will need to be read and understood for its impact and enhancement with performance of the property.
- Lease negotiation – A lease during its duration will create many factors of negotiation such as rent reviews, lease options, and expires. Advanced property knowledge in the local area will help with lease negotiation both with the landlord and the tenant.
- Market rentals – There are different types of rents and rental strategies that apply to a retail property. They are generally those relating to net, gross, face, and effective rents. In considering those rents, factors relating to outgoings in the property will also be an issue.
- Incentives – What types of incentives are relevant to the property market today and can the landlord factor those incentives into the lease deal? Those decisions are also likely to include landlord works as part of the lease negotiation.
- Rent reviews and options – Over the lease term the rent and occupancy returns should be improved by rental reviews and lease options. That is on the basis that the tenant is a clear match for the tenant mix into the future.
- Finding tenants – You will always need new tenants to fill vacant parts of the property or premises. Finding and then choosing the right tenants will be a priority to keep the right property profile and customer interest. It is best to have a tenant retention plan and a tenant mix plan running in parallel.
- Critical dates – These are the important dates from every lease. Stay well ahead of the critical date activities. That means you will need to read every lease and document associated with occupancy.
- Reporting and planning – Every landlord will have certain requirements when it comes to reporting and financial matters. Get close to your clients to understand exactly what they require when it comes to property performance reporting.
- Tenant communication and controls – It is a fact that many tenants will attempt to ‘bend the rules’ when it comes to property use and occupancy. Keep close to your tenants and watch their lease documents to prevent any difficulties.
- Landlord interaction – Every month there will be reasons to talk to your clients and instructions from them to implement. Establish a system of communication and control with all your landlord matters. Track and record all your landlord issues.
From this list it may seem that there are many things to do; whilst that is partially true, the role of a professional property manage is very skilled and highly rewarding.