So, the equation to retail and shopping centre property performance goes a bit like this….
- Strengthen the tenant mix so that all the demands of the customer base are encouraged and served with a variety of goods and services
- Attract customers to return to the property frequently for all of their retail shopping needs
- Convenience is important to shopping centre performance, including access to good transport and car parking facilities
- Position the retail property more favourably than the competing properties in the local area
- Entertain customers as they revisit the property so they want to come back frequently. Make the shopping experience a good one in a consistent way.
- Support the investment targets of the landlord with business strategies, a property business plan, and a vacancy reduction plan.
- Integrate the shopping centre into the location and the community in many ways.
It is interesting to note that some property owners are so focused on rental income, that they fail to see the threats that evolve from a neglected tenant mix and occupancy base. When tenants move away from a retail property, the replacement process can be a challenge, particularly if there are competing retail properties in the zone. The best retail property owners look to the competition and total retail picture when assessing strategies and upgrades for their property. The success of the tenants is integral to the success of a retail property.