When you manage a complex shopping centre, it is essential to understand the tenancy mix and the tenancy activity. This process allows you to protect the income for the landlord in keeping with the business plan for the property. Shopping centres today can be from a size of a small suburban strip centre of say 5 to 10 tenants, to the larger properties with an anchor tenant (or two or more) plus the greater number of speciality tenants to balance the shopper offering across the property. Retail property leasing and management is a specialised process; far more so than office or industrial property. That is why only specialised agents work on this property type successfully. When you manage or lease retail property there are some key components to control such as:
Financial control (income and expenditure) plus budget optimisation
Shopper interest and access
Landlord reporting and communication
Tenant management is number one on the list because it is the foundation of income around which the property evolves. That is why tenant management is so important for the property owner and the property manager.
Getting to know the tenants and their future business activities should therefore be built into the weekly property management processes for the centre management team. To understand tenant movement there are some questions and concepts that can be monitored: To get more from NG-CS.com
Exactly who are the tenants in the property and do you know them well? They must be able to feel comfortable in connecting with you about any lease or occupancy needs. The must trust you.
Differentiate between specialty tenants and anchor tenants because they will have different challenges to address. The anchor tenant is with you for a long time and on a long lease. The anchor tenant will contribute to a large part of the income for the property. The anchor tenant will also be the main reason that people visit the property. All of your specialty tenants will be structured around the activities of the anchor.
The maintenance in the property will have impact on all the tenancies. The tenants like to know and see that the property is being maintained well and to the appropriate levels of customer comfort. An under maintained property will see customers move away to competition shopping centres nearby. When the customers move, the tenants are the next to leave.
Pay close attention to critical lease dates. They are for lease renewals, rent reviews, and lease expires. Ideally you should be looking at these dates at least 18 months in advance. This allows you to undertake the necessary lease negotiations as appropriate or commence any marketing of upcoming vacancies.
When you connect with the tenants on a regular basis, you can manage the tenancy mix in keeping with the plans of the landlord. Ideally you should be minimising any surprises or unexpected events in the property.