Tuesday, August 7, 2012

Things to Do with Anchor Tenants in Retail Property

female shopper holding up shopping bags in the air
Help your retail tenants thrive.

When you lease or manage a retail property, you will know that the retail anchor tenant is important to the future of the property.  In most cases the anchor tenant will be in occupancy for a long time, and will have a special set of lease terms and conditions to reflect that fact.  The anchor tenant will make or break the success of the property for all stakeholders.

Anchor Tenant Should Thrive

In an ideal world as a property manager or leasing executive you want the anchor tenant to thrive as a business in the property.  That is not always easy given that things change in the customer profile and shopper demographic.  Keeping a close eye on the changes to shopping trends is really important; the anchor tenant should be doing that themselves and making the necessary adjustments, but the property manager should be closely involved in that process as well.

Here are some tips to help you work with anchor tenants in a retail shopping centre or mall.

  1. Meet with the anchor tenant at least monthly to talk about shopping trends and sales figures.  You need the anchor tenant to be open and frank with you; in most cases they will, providing they know that growth of sales and property improvement are your main targets.
  2. Review trading figures for all the specialty tenants as part of working with the anchor tenant.  It is likely that there will be a link between the two numbers.  Specialty tenants can be grouped into categories so you can see the numbers and trends on a group basis.  Seasonally (summer, winter, autumn, and spring), it is possible that one group will be better than another in sales and growth of sales, then that ratio could change in another season.
  3. Get the anchor tenant involved with specialty tenants through marketing campaigns for the property.  As to who exactly should pay for the marketing campaign is open for discussion, but a good retail property should be comprehensively and continually marketed into the local shopping community.  It is in everyone’s best interests to promote the property; the tenants, landlord, and the anchor tenant all benefit from good marketing staged throughout the year.
  4. Review customer numbers coming to the property each day and each week. Over time you can see some trends in the visits and that will help you focus your marketing campaigns.
  5. Property presentation should always benefit the tenants and the customers.  If a property has been let to decline in presentation, shoppers will soon move their shopping habits to another property.  Property presentation as a point of focus is both common area and tenant related.  On that basis the leases for the tenants and the anchor tenant should feature a refurbishment provision to make sure that the tenancy looks good at all times.

Work closely with your anchor tenants, the property will benefit in many different ways.

Get some more tips for retail shopping centre management and leasing at our website.