Shopping Centre Leasing and Management – How to Lease Your Vacancies Faster
When leasing a shopping centre it is fundamentally important to do so with due regard to the tenancy mix plans and strategy that have been set for the property. It is the tenancy mix that supports property function, customer interest and tenant interaction.
When you look at a single lease negotiation in a retail property the main points of interest to both parties are generally:
Lease term in years and months as the case may be
Starting rent both in amount and type (gross and net)
Lease option terms, duration, and method of exercising them
Outgoings recoveries by type and method of recover
Rent review profiles and frequency to be applied during the term of occupancy
Make good strategies to be undertaken by the tenant at the end of the lease.
With a focus on retail property there are some more things to consider making the leasing of the property successful. Consider some of these:
Permitted use of the premises
Turnover rent or turnover strategies for getting more rent as the property and tenant business starts to grow.
Tracking of turnover figures so the shopping centre success can be gauged and rated for performance against industry averages in the area
Renovation and relocation provisions for the premises so that the presentation of the property can be maintained at a high level for customers
After-hours access of the premises for tenants that need to stock up the products and services that they sell
Extended security for the special nature of the shopping centre
Marketing of the tenants business
Marketing of the shopping centre
Customer service and quality provided by the tenant
Hours of trade that satisfy customer demand
Placement of the specialty tenants with due regard to support and give interaction with the anchor tenants.
Quality of shop presentation for encouraging trade and image
So the list can go on subject to the particular property you may manage or lease. In saying that though, the retail property is a vibrant property investment that is designed and leased with one main thing in mind; to create sales and business.
A good retail property manager should understand the landlord’s plans for the property, the needs of the local community, the requirements of the tenants to trade, and the changing elements of the local demographics. This is a fine balance that will help produce a successful property for everyone. Retail shopping centre management is perhaps the most specialised part of the industry.