When you manage or lease a retail shopping centre, the tenancy mix will be a critical part of property performance. A good tenancy mix will always underpin the customer visits to the property and the turnover or sales for the tenants. Here are some tips from our Newsletter.
So a key target for all property owners and managers of retail property should be to plan and optimise the tenants that are selected and placed within the property. There are a number of factors to consider in this process such as the following:
1. You will need to understand from the outset, exactly what the customers are looking for within the property. Why do they come to the property, and what are they looking for? These factors can change over time so it does pay to survey the customers and the tenants two or three times a year as part of this monitoring process.
2. The property will have areas of high traffic flow and low traffic flow. That can be due to a number of factors such as property design, doorways, public transport drop points, and taxi ranks. Look at these factors so you know what impact they have on the people entering your property.
3. When customers visit your property they will have a typical spending pattern; such as money spent, goods or services required, time taken, and the number of tenants visited. A survey approach will help with your understanding on these things.
4. Some of your tenants will be located at high traffic points within the property. Look at just how customers interact at these points. Do they stop to shop or do they pass those adjacent tenants and not purchase?
5. Some of your tenants will be of high destination focus for some shoppers. These tenants pull people to you property, and on that basis should be located at special points on the property that work for the customers and also for the adjacent tenants. Convenience is the key. Shoppers may want to find the tenancy, do their business and then leave. You and place other tenants around the destination tenant so the shopper stays in the area to explore other goods and services.
6. Tenants of a like type or complementary type should be located near to each other. In this way you can capture the extended shopping interests of the customer. For example, if the customer wants to buy ladies shoes, then a hand bag shop nearby would be a sensible placement. You could also place a coffee shop in the immediate vicinity to help shoppers stay in the area.
When you get the tenant mix balanced to the property and the customer, sales and growth for the property is very possible. In tougher retail times where shoppers are more discerning, everything you can do in the tenant mix will be of great importance. Consider where each tenant should be located and start to work that placement to a plan.
Need some more retail tenancy mix ideas? Get our Newsletter here.