When it comes to managing a shopping centre accurately and professionally, you need to be well prepared. There are many things to think about and control. The larger the property and the tenant mix, the busier you will be.
It should be said that a retail shopping centre is perhaps the most interesting property type to manage and certainly the most intense from a time and task perspective. The fees that are set to manage a retail property should reflect the time and the tasks involved. Don’t cut corners or discount the fee that you require for services provided.
The property management processes in a retail property are quite demanding and complex. Many issues and factors come together through the involvement of stakeholders to the process. The success of a retail property is therefore a fine balance between the interests of the landlord, customers, tenants, and the property manager.
Here are some factors to merge into your retail property management plan and tenant control systems:
- Every landlord and property owner will have certain requirements and targets as part of the property ownership. You will need to know the investment requirements so that you can maintain the cash flow correctly, and the leases accordingly.
- Check out the other properties and the local area that may be similar to your retail property. Understand the strengths and weaknesses of each and how they may have an impact on tenant movement locally. Some tenants will be attracted to other properties away from yours. This then says that you should have a tenant retention plan to give the rental some stability and remove the threat of vacancy.
- A successful retail shopping centre will match the needs and integrate into the local community. This says that you will need to understand the shopping patterns and customer requirements. To do this correctly, it’s desirable to do some market research. That should occur at least every six months.
- Most retail properties will have a large number of speciality tenants, and one or two anchor tenants. The anchor tenants bring stability to the property and will help attract the customer base. The speciality tenants add to the experience of shopper and the customer. You will therefore need a tenant mix strategy to go with your retention plan. Understand the tenants that will bring future value to the property and customer interest.
- The income and the expenditure performance for a Retail Property will be driven from the prevailing market rental and management processes. Should be said that most retail centres are expensive from an expenditure point of view. The outgoings will be high when compared to Office Property. Understand the averages that apply to similar properties and the location. Maintain the financial performance of your property within the averages.
There are many other things that you can add to the list. Lease strategies and vacancy management requirements will be ever present. Review all the leases in the property so that all critical dates are acted upon in a timely way.