|Know your Anchor tenants needs and focus.|
In commercial and retail property management today, the value of the anchor tenant to the property should never be under estimated and should always be protected.
Here are some tips from a recent Newsletter for Commercial and Retail property managers.
When you have the correct anchor tenant in a property, the smaller tenancies in the same property can thrive and grow their cash flow much more successfully. That can only mean two things; a good rental base and tenant mix.
Consider the following questions when it comes to your anchor tenants:
- How many people do they attract to your property and the other tenants?
- What type of people do they bring to the property and at what frequency?
- Will the customers for the anchor tenant spend extra time and money with some of the other tenants nearby or adjacent to the anchor tenancy?
- When will the lease for the anchor tenant become suitable for renegotiation?
- What types of pressures apply to the anchor tenant and should you get involved as part of a tenant retention plans and marketing strategy?
- What pressures would occur on the property if the anchor tenant left?
- Is your anchor tenant impacted by other comparable properties nearby? If so how and why?
- Can you negotiate any other lease terms and conditions today that would help the anchor tenant serve the greater property with more customers?
- Can they attract more customers to the property for the greater benefit of all concerned?
A well-chosen anchor tenant creates a good investment profile for the property whether it be office, industrial, or retail. This then suggests that the landlord, property manager, or leasing manager should stay in a close working relationship with the anchor tenant during their lease and business operations.
A successful anchor tenant gives the correct identity to the property and perhaps even more so when it comes to retail property. The anchor tenant encourages people to visit the property and spend time and money within the tenancy mix.
Tenant Retention Plans
As part of a process in commercial and retail property management, each property should have a tenant retention plan established and operational. In this difficult global economy, a tenant retention plan is critical to the overall property performance and stability. It is up to the property manager, leasing manager, and or landlord to ensure that the retention plan is ongoing, positive, and responsive.
Watch the Competition Properties
The anchor tenant will service a particular market and customer profile. Locally you will also find some properties of similar type and customer profile. On that basis it is wise to spend time visiting the other properties regularly to identify any pressures and changes that they may be experiencing.
As part of that process, give some special attention to their anchor tenants and identify the trading patterns and pressures in each case. Will they have some indicators that you can use in your property performance?
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