A retail shopping center or mall is a very special place when it comes to property performance and leasing. A good retail leasing agent will specialize in the leasing process and the factors that impact retail property performance. Tenant mix and other factors will be part of that.
A top performing retail property is built around a number of factors that are finely balanced to the requirements of the:
- Tenant mix
- Property design and improvements
- Local demographic
Every lease that you negotiate should take into account the functions of the tenants business and match that into the cash flow requirements of the landlord. Retail leasing specialists are perhaps the most specialized leasing experts in the property industry.
Retail property agents and leasing specialists understand the impact of a tenant when placed into a tenant mix and customer demographic. When the match is correct, the greater benefit flows across the property and the surrounding mix. Everyone benefits from a well-placed tenant and a good lease.
Look at every retail property in a unique way. Get to understand what makes the property 'tick' and check out the trading figures and customer numbers. Find out why people are visiting the property and on what days.
Here are some factors that can help you in reviewing the potential of tenant placement in a retail property today:
- Check out the property location and how people access it. Surrounding roads and freeways could have a real impact on trade and customer access.
- Determine the primary customer demographic. When you have done that, decide why people visit the property and when. Are the sales for tenants based on 'convenience' or 'destination' retailing? Choose your new contracts accordingly.
- The layout of the property and the situation of the tenancy will be of concern to the incoming tenant for any vacancy that you have to lease. Foot traffic passing the promises will help sales. The awards on corners and access doorways are likely to be the better in sales performance. Make sure you do not put a 'service' type tenant in such a prominent location. Top locations should be reserved for high profile and highly performing retailers.
- What exposure can you give contracts when it comes to signage both inside and outside of the property? A good retail property gives a solid marketing message to the customers surrounding it.
- When people visit the property, how can the get from the car park to the shops? Is the car park user friendly? Look at property access from a customer perspective. Understand how tenants can be placed in and around the movement of customers in and out of the property.
You can add to this list based on the property and the location. It is critical that you understand the opportunities that the retail shopping center offers to its tenants and customers. From those facts you can build a good lease and protect the landlord's rental income and cash flow.