As investment properties go, the retail property or shopping centre is a category of property that needs special respect and understanding. In this way the property performance can be optimised.
Property investors and real estate agents should only get involved with this category of property when they completely understand the dynamics of the property type.
Retail property performance is a balance of relationships between the landlord, the tenants, and the customers. Each group or party has its own set of preferences and dynamics. The property manager for the premises is the intermediary between each of the parties with their vested interests, and is the only person well placed to really make the property perform at its best levels. On this basis, the selection and employment of a retail property manager is a serious decision that should not be underplayed. 레플리카 시계
Consider these relationships in a retail property and how important they are to each other:
- The landlord is ultimately seeking a sound financial performance and net return from the property. This will only be achieved through successful tenancies experiencing successful levels of trade.
- The tenants are looking for sustainable and realistic occupancy costs that support the operation of their business in the successful shopping centre. The tenants are also looking for consistent customer visits and solid levels of trade.
- Customers to the property are usually drawn from the surrounding local community and demographic. They will only visit the property frequently if their shopping needs are satisfied and the visit is convenient.
So the Retail Property manager takes on board this diverse set of relationships and interests. The manager of the property should only take on the task of property management if they have significant retail experience in properties of similar size and nature.
The running of the shopping centre will see daily decisions centred around factors such as these:
- The lease strategies and tenancy mix optimisation to encourage the right mix of services and products for sale across the property
- Rental initiatives that sustain good occupancy levels and stable rentals that are in balance with market trends
- Vacancy minimisation plans to strengthen the seasonal levels of occupancy
- Services and amenities to compliment the function of the property for customers and tenants
- Common area usage improvements such as car parks, malls, and thoroughfares so the customer is encouraged to stay at the property longer increasing their potential for purchase.
- Expenditure and maintenance decisions that allow the property to function efficiently on a day to day basis
- Marketing strategies to promote the shopping centre to the customer demographic and local community
- Relocation and renovation strategies to sustain property appearance and encourage customer visitation