Franchise Groups are an Absolute Must in a Shopping Center Tenant Mix
When you are designing a retail shopping center for successful trading and performance, many issues are of concern, not the least of which is the tenant mix.
Creating that ideal mix of anchor tenants and specialty tenants requires knowledge and planning. Franchise groups should be a key component of the overall mix.
So the message here is that the retail property manager or leasing manager should carefully review what they need in the retail mix and see what successful franchise groups could be relevant and important to the overall retail offering.
Other retail properties locally and the tenant mix in each case will offer many ideas on what works and what is problematic when it comes to tenant choice and placement.
Key Tenant Mix Questions
Consider these questions that could apply to your retail property:
- What is your customer demographic, and how is it changing?
- Why do customers go to your property now, when do they go, and in what frequency?
- What are customers looking for now in tenant type, services, and products?
- How many tenants should you have in each of the retail tenant groups?
- How many speciality tenants should you include in the mix?
- How many destination tenants should you place in your mix?
- How will the anchor tenants impact customer attraction and revisits?
- What are the factors of clustering that you will need to bolster sales in zones within the property?
- What factors of market rental should you consider in your tenant choices and placements?
- Where are the better locations for tenants in the property?
- What tenants should you have in certain locations?
If you are considering selecting a franchise group for shopping center occupancy, be aware of the following issues and make your choices in each case:
- Lease tenure to match franchise agreement term
- Branding requirements of the franchise group
- Exclusivity versus permitted use or retail offering
- Control of the shop and lease in times of tenant default
- Proximity of franchise tenants to other small specialities
Retail Shop Tenant Types
Within each of the following retail shop segments, you will find a good selection of franchise tenants to choose from:
- Fast Food, Dining, and Cafes
- Men’s Fashion
- Ladies Fashion
- Children’s Fashion
- Casual and Mixed Fashion
- Footwear and Accessories
- Fresh Food
- Jewellery
- Hair and Beauty
- Homewares, Electrical, and Gifts
- Pharmacy, Optical, and Health
- Medical Centers
- Liquor
- Mobile Telephones
- Travel
- Gyms and Fitness
- Health Foods
The question here is what tenants will you require in your mix and how will those tenants be placed in proximity to others?
Understand the factors of retail shop clustering so that each tenant group in each zone of the shopping center is encouraging complementary sales between shops and extending the time of the customer to purchase goods.
