There are many different things to think about when you lease and manage a shopping centre. The success of the tenants are part of that and should be encouraged; successful tenants contribute towards the making of a high performing shopping centre.
What about customer attraction? Does that also matter? Local customers should also be attracted to the property.
Through all of the changes to the retail economy with the internet and online shopping today, shoppers are needed to boost sales and give the tenants some stability of operation.
Why should customers return to your retail property? You must know the answer to that question, and it should feature in the business plan strategy for the asset.
Through all of these things, there is the landlord and the reporting requirements for the landlord. To manage a shopping centre well, all the stakeholders must be well served and supported.
Shopping Centre Success Retail Equation
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
- Attract customers to return to the property frequently for all of their retail shopping needs
- Entertain customers as they revisit the property. Make the shopping experience a good one.
- Support the investment targets of the landlord with business strategies, a property business plan, and a vacancy reduction plan.
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.
Protect your tenant mix and encourage all of your good tenants to remain in occupancy. Avoid the costs and the delays of vacancies in your retail property.
Criteria of Review in Shopping Centres
So here are some factors to think about if you are to manage and or lease a shopping centre:
- Property location and customer base
- Tenancy mix
- Lease documentation
- Vacancy factors
- Critical dates
- Maintenance matters
- Capital works programs
- Marketing strategies
- Landlord and tenant relations
- Risk management
- Renovation and relocation requirements
There is a good degree of investigation required in all of those factors. Look for the strengths in the shopping centre and resolve the weaknesses.