When it comes to owning and managing a retail shopping centre the last thing you want is a large number of vacancies. It gives the shopping centre a negative image and detracts from the trade of the tenants. In an ideal world, you should be retaining tenants within the tenant mix to increase the trade for the property.
One of the key things to consider with managing a shopping centre is to stagger the lease expiries and the lease options. There is no reason to have tenancies expiring at the same time or near each other, unless you are doing a refurbishment or renovation strategy within the building.
So vacant retail space occurs for one of the following reasons:
- The lease has come to an end
- The tenant is in default under the terms of the lease
- The tenant has vacated the premises
- The tenant has negotiated an early termination
- The landlord wants to take control of the premises
- The tenant has failed to exercise the lease option
Given all of this and if the vacancy has occurred, it is fundamentally important to keep the vacancy well-presented and or occupied by short-term tenants. Other tenants in the shopping centre are likely to cooperate with short term and low cost retail displays or points of sale.
The best shopping centre strategy is to maintain stable levels of occupancy and minimise vacant space. On that basis the property manager is performing the correct service for the landlord when it comes to income optimisation.
You can get more tips for retail property management and leasing at http://www.commercial-realestate-training.com/
Every day as a real estate agent you will have the need to present on something to do with a commercial property or listing. Perhaps you are:
- Pitching for the listing
- Selling the marketing package
- Inspecting and presenting the property to buyers or tenants
- Making the contract or lease negotiation move onto paper
- Closing the sale or lease
- Facilitating the settlement
- Handling the due diligence issues
Here are the rules that I coach for just these very cases.
- Get all the detail of the property or deal together before you meet with the parties
- If you have not already done so, fully inspect the premises and the property so you know it intimately
- Define what the best outcome is for you and your client so you know what you are targeting
- Have a BATNA (Best Alternative to No Agreement) ready to use
- Have some visuals available to use in and simplify the pitch (bulky documentation is hard to pitch for or with)
- Create a simple series of steps in the presentation that will move you towards the outcome you seek
- Have a series of good questions ready to use in the meeting with the parties
- Select one or two relevant stories about the property or the area that can be fed into the discussion
- No pressure selling please. Just use relevant information and logic.
- Understand the pressure of the other party and the ultimate target that they want.
Every good sales pitch or presentation in commercial or retail real estate is a product of preparation and relevant connection. If you want more on this check out my other articles on http://www.commercial-realestate-training.com/