The quality of the retail tenants that you put in a shopping center will greatly impact the tenant mix and the attraction of customers to the property over the long term. Every vacancy should be carefully considered so that the best tenant is chosen for the location with a view to the longer term bolstering of sales turnover and customer visits.
Are you looking for tenants now? Retail tenants will generally be available across a number of categories and could be placed in a vacant shop or premises; the question is ‘What tenants do you need to match the customer expectations and demands?’ A successful tenant mix is a carefully constructed equation of shop placement, tenants, customers, marketing, lease documentation, and presentation.
Focus Your Tenant Efforts
If you are trying hard to find retail tenants for your property now, here are some of the most common categories of retailing that will allow you to drill down on the prospecting process and look for the better retailers:
- Hair and Beauty
- Electrical goods
- Computers (Retail)
- Pharmacy or Chemist
- Health foods and products
- Mobile telephones and Communications
- Medical Centres
- Dental Services
- Travel and Tourism
- Post Office
- Travel bags and accessories
- Mens fashion
- Mixed fashion
- Ladies fashion
- Childrens fashion
- Fresh food
- Fast food
- Sporting Goods
- Department Stores
- Dry cleaning
- Shoe repairs
- Car wash and detailing
- Gyms and fitness
There are just so many opportunities for tenant placement in this list; choose the right tenant types for your vacancy and then find the tenants. Focus down on the tenant types from the list above and look for successful tenants in each category.
So how do you find them?
Try this group of ideas:
- Canvass the other tenants in other shopping centers
- Look for tenant mix ideas in retail shopping brochures and marketing material
- Contact the retail chains and merchandising groups
- Talk to your current tenants to see who they may know
- Focus on merchandise types for particular locations
- Call down all the franchise groups in your town or city
It is relatively easy to find retailers to fill vacant shops. The questions really evolve around the following:
- What is the best tenant type for the location?
- What are the ideal lease terms and conditions for occupancy?
- How will you balance the tenant mix and clusters of shops in the location?
- What rent should you ask for the shop?
- How will you control the permitted use or exclusivity factors that come with leased areas?
- What is the balance between anchor tenants and specialty tenants?
From this group of ideas, you can see why retail leasing is a very special part of the property industry. The success of a shopping center will usually hinge on the tenant selection and placement process. Target the right tenants for the location; that’s the rule.