Tenancy mix becomes very important in retail premises and properties of multiple tenants; that will be shopping centres of all sizes and types. A property that does not reach the needs or interest of a customer is going to fail. (NB – you can get more free retail tenant mix training in ‘Snapshot’ right here)
A customer wants to be well served in their shopping needs and feel good about it when they visit your property. Visit the competition shopping centre properties nearby to compare them to that which you are currently leasing. You must understand the other properties that you are competing against together with the strengths and weaknesses that they experience.
How to Review Other Retail Properties
In reviewing these other retail properties you look at things such as:
- The entrance ways
- The car parks
- The flow of people
- The places where people stop and congregate
- The larger anchor tenants type and location
- Standards of signage
- Lighting internally
- Transport to and from the property
- The tenants that seem more successful than others
- The tenants that seem to feed customers off each other
- The amount of time that people spend at the shopping centre
- The busier days for customer shopping
When looking at these other properties it is wise to take selective photos of the things that may be relevant to compare to your property. You can analyse the photos later and revisit your ideas. Note that some property owners and managers will be sensitive to you taking photos around their property. Discretion is the rule here.
The only way you can underpin your rental and strengthen it is through a good tenancy mix. Given that the leases in premises are for lengthy periods of time, any mistake with tenancy mix will exist for years and frustrate the rent, the customer, the tenant, and the property. Hence you must choose tenants well and then place them with a lease that is in harmony with the surrounding premises.
Shopping Center Review Process
As parts of that process look at these issues in balance so that any concerns of tenant mix occupancy are removed and nullified. Understand:
- Income exposure at expiry
- Option exercise potentials
- Exclusive or Permitted uses in the leases
- Vacancy effects on other existing tenants
- Relationship building or conflict potential between sitting tenant types
- Know why tenants like or dislike your property
- Know how your existing tenants maximize their business operations at your property
If you follow these steps, you will be armed with the strategy you need to put you in the ‘driver’s seat’ as you implement a new leasing campaign and tenancy mix for your managed property. You will know the tenant you want and you will have the selling points to attract them.
You can get other information on this concept here: http://www.commercial-realestate-training.com