The ultimate goal of any landlord is to achieve the maximum income from their commercial property. However, that doesn’t mean they should lose focus on the big picture and give their space to whatever retailer is interested in the property. Keeping the right mix of tenants on the property leads to increased foot traffic, higher spending, delighted tenants, and ultimately more demand and better rates for the property.
Read on to discover the five ways to create the best tenant mix for a mall.
Study the demography of the environment.
The demographics of nearby locations play a vital role in determining what types of retailers will best suit shoppers. Conduct surveys and collect information related to what your target customers would like to see in the area around them. For example, pharmacy stores can be a valuable addition to an aging population.
Talk to your existing tenants
Existing retail tenants can be a good source of information on which brands and products can add more value to your own store and ultimately to the owner. Analyze the performance of stores and further analyze their strengths and weaknesses and build ways to overcome or improve them.
Mix brands and categories
A retail hub that strikes a balance between big and small brands and has a broader collection of product categories than simply targeting part of the demographic enjoys better foot traffic. Choose tenants from various product categories and be sure to include local retailers that always have something new and fresh to offer. Look beyond the retail lineup and set up service facilities like ATMs to optimize the time and effort spent creating the perfect mix of tenants.
Make market assessment part of the responsibility
Tenants come and go at the end of the lease. This can disrupt existing interconnections within the commercial space. For example, men who visit your retail center to buy baby diapers at one outlet tend to have a few drinks at the next. Retail centers must continually invest time and effort to assess the market and ensure that their mix of tenants is optimizing overall performance.
Hire a good commercial real estate company
Commercial real estate property management services have mastered the art of using several proven techniques to find the right match for any type of commercial property. They study the area around the property, analyze the geographical advantages and disadvantages of the place and have real estate experts to work on the tenant mix. They conduct a competitor analysis to check what products and services are missing in the area and also work to acquire high quality tenants for the property.
Landlords and real estate companies can use property management services to manage tenant relationships from start to finish while they focus on other core activities.
