Many a retail leasing manager or shopping centre manager will know the difficulties that arise with some retail tenants from time to time. They arise principally because the retail tenant in the shopping centre is so closely geared to their livelihood and business operations. When trade is up, all is good; when trade is down, there will be problems.
The retail shop in its location may be the only way in which tenants generate sales. When the economy is soft, and or the landlord does little to help the growth of customers visiting the property, things become a real problem for all concerned very quickly.
There is a strong link between tenants, customers, and the landlord. If any one of those factors is weak or unstable, the retail property can struggle.
If a landlord or property manager does not support the retail tenant mix in the property, the end result can be tenant frustration, and eventually a higher vacancy factor in the property. That will have a flow through to poor market rents and a property that is seen to be struggling in the eyes of the shopper.
When customers get the feeling that the property is struggling, they will start to shop elsewhere. Customers want to feel good when they shop; the retail property should look good, be well maintained, and give the customers a positive shopping experience. 레플리카 시계
When a shopping centre is underperforming from a trade perspective, it has direct impact on most if not all the retail tenancies. Given that most of the tenant’s success will rely on sales turnover of the single retail business, an underperforming shopping centre with poor customer visits can be a major source of frustration.
So here are some tips to make a shopping centre work for all parties:
- Understand what the local shopper demographic is and if it is changing in any way.
- Pay close attention on other competing properties nearby in case they are on the hunt for your tenants.
- Any anchor tenants in your property should be carefully nurtured so that the drawing power that they create is maintained and strengthened.
- The success of your shopping centre is partly built around the existing tenant mix. Any weaknesses in the mix should be addressed or relocated.
- Your leases with existing tenants should be closely watched for rent reviews, expiry, and option activity. Any negotiations between the landlord and tenant should be started as early as practical to solve issues in a controlled way.
- Maintain the property so that the tenants and the customers feel comfortable as they go about their business and shopping requirements.