|Choose your retail tenants and tenant mix carefully|
The customer experience in a retail property or shopping centre will encourage future business and tenant trade. That will have flow through to the stability of rental for the landlord. On this basis there is a definite equation between the local customers, the tenants, and the landlord. All parties need to cooperate to build on the successes of a retail shopping centre. Here are some tips from our Newsletter.
The customers can be encouraged to visit the centre by a proactive strategies implemented by the marketing manager or centre manager. When you have a stable base of customers and a growing local community, the potential for the shopping centre to thrive is significant. It all then comes down to the selection of the correct tenancies to make the property match the demands of the customers.
From time to time the local or regional economy may be under some pressure and that will have a flow through to customer spending patterns and sales. For this very reason, the centre manager and the marketing manager for the property should be closely monitoring the traffic count numbers to the property and the sales turnovers for each particular tenancy. When any weaknesses start to occur, strategies should be implemented to resolve the problem or adjust the tenancy mix.
It is very much the case that retail property leasing and management is quite specialised. The people managing the property should be experienced in retail trade and retail leasing. They should understand how to stabilise the income and minimize the vacancies through sound leasing strategies and tenancy mix analysis.
Tips for Inspecting
Here are some tips to apply in the inspecting of any retail shopping centre. They can also apply in the case of the competition properties in your local area.
1. Identify how people move to the property and through the property. Visit the property yourself as a potential customer looking at the aesthetics and experiences of the process.
2. Look at the common areas within the property and spend time checking them out. Sit down and the common areas and see what the customers do as part of visiting the property.
3. The smaller high interest tenancies should be on the corners of the high traffic areas. In this way good rentals will be maintained for the small spaces. You should never place a large tenancy on a corner in a high traffic area. They can be placed adjacent to the corners, and feed off the corner tenants as appropriate.
4. Look at the various tenancy entrance ways and shop frontages. There should be some standards set that apply across all tenancies has to signage location and size. There may also be standards applied to the illumination of the shop front and or the signage.
5. Observe each of the tenancies from a shopper perspective. Are each of the shops welcoming and of a high quality presentation? Are there any shops that are detracting from the presentation of others in the immediate area? Are there any shops that are obviously unsuccessful for particular reasons and can the customers see that from the outside?
6. Visit all of the shops as a potential customer. Assess the welcoming process that applies in each case with various sales staff within each shop. Look at the levels of stock available for purchase, and observe its placement relative to the movements of the customers within the shop.
7. Can the shopper easily move around the shop and feel comfortable in the process? Look at the illumination, the marketing material, and the displays that appear throughout the shop from the front doorway through to the back of the premises. Look for any weaknesses that could apply in the customer experience.
The retail property inspection process is quite special and can even be refined through a checklist process. Give special attention and focus to those tenants that are not normally and strictly retail. They made pull customers to your property but they can detract from the retail theme. Banks and financial institutions, real estate agents, and professional offices should not be located in the high traffic retail zones within the retail property. They are best placed adjacent to the entrance ways leading into the property.
Need some more ideas for your Retail property? Get some tips right here in our Newsletter.