Managing a shopping center is a specialized process that needs a good property manager who understands the type of property and what is required to optimize property performance for tenants and owner.
Commercial property is special when it comes to function and performance. It takes consistent and ongoing work to nurture a retail property towards success. You can’t put tenants on property and then just let things happen. A successful retail property is all about strategy and implementation.
Rentals and leases are only a small part of the mall management process. Consider this list.
- Rent optimization for the lessor given the business plan of the property
- Realistic occupancy costs that do not put the tenant out of business
- Placement of the property in the local community and how it will serve the community
- Leasing incentives to keep current tenants
- Mix of tenants to help make the property successful
- Leasing incentives to attract new tenants
- Communication with tenant to keep occupancy and conflict to a minimum
- Owner reporting processes that keep property information flowing and aid in the decision process
- Rent review processes that stabilize rent growth without creating a vacancy explosion
- Expense management to minimize expenses while running the property at acceptable levels of operational performance
- Maintenance management to keep the property running financially and physically.
- Budgeting of the income and expenses of the shopping center to achieve the objectives of the property
- Marketing of the property to the community and potential client to optimize trade and billing for tenants.
- Vacant Space Lease Negotiations
The list is not complete but it shows you the most important control elements in the management of shopping centers. A property manager should try to keep these items under control at all times.
The combination of tenants in a commercial property is the main strategy that will help it to be successful. When you choose the right tenants for the property and help them market through targeted property marketing, you are on the right path to progress.
The combination of tenants is a product of choice; a choice of what the property is for the community and how it will make it happen. Business property can be any of the following:
- Local strip shopping from a small group of individual stores
- Convenience shopping with an anchor hold
- Neighborhood Center with one or more anchor tenants
- District Center with two or more anchor tenants and many small specialty retailers
- Regional center with three or more anchor tenants and a large number of small and medium specialty retailers
When you know the customer base you serve and why they will visit the property, then you will know the tenants that are required in the tenant mix to make the property successful. Your tenant mix and strategy can be built around these elements. From that moment it is about attracting the client to visit the property and spend money. That is where the marketing of Shopping Centers takes over.