The process of retail shop leasing is specialised for many reasons. It is also a very unique and yet rewarding part of the property industry for agents to get involved. If you want to start leasing shops, do that on the basis of providing comprehensive retail property services; that is across sales, leasing, and property management or shopping centre management.
One thing leads to another in retail property services. A lease can lead to a property management appointment and a future potential sale of the property. The property investors that work with retail shopping centres demand top quality retail agents that really understand how to solve a shop or retail leasing problem. That is where the landlord and the leasing agent must work together.
It is a fact that one tenant can do a lot to support or destroy the performance of the tenant mix in a shopping centre. All tenants should be chosen with care and only after reflection on the overall property targets and servicing the known customer demographics.
Before going further here it is worthwhile defining what a ‘highly performing shopping centre’ actually is, and why that may be a target for many property investors. A shopping centre in the higher levels of performance will cover off on most if not all of the following factors:
- A good balance between offerings of the anchor tenants and the specialty tenants.
- A tenant mix that is matched to the requirements of the customer demographic
- Stable and growing market rentals that are supported by solid sales evidence and MAT (Moving Annual Turnover)
- A plan for ongoing renovations and expansion to allow the tenant mix to expand
- On target budgets of income and expenditure that match or exceed industry expectations for a property of its type and location
- A respected place in the community that encourages ongoing community interaction and support
- A tenant mix that is aligned to the customers and the property
- Tenants that are involved in the community
- A landlord that has respect for the tenant and customer relationship that must be nurtured for ongoing property performance
- A strong partnership of the landlord and the tenants towards supporting and servicing the local customers
- A well maintained property that encourages sales, customer visits, and community interaction
- A property that is easy to access and encourages the ongoing retail spend of the customers locally
- Services and amenities that are well maintained to the expectations of tenants and customers alike
Perhaps you can add to the list based on your location. It is quite easy to see why a retail property is so special; as should be the people that lease, manage, and sell such important property investments.
If you want to lease retail shops and shopping centres as a profession, take the time to fully understand all of the above retail concepts.