Retail Shop Leasing Success for Property Leasing Agents Today

The retail shop leasing process is quite specific and special.  It requires property agents that are very familiar with the retail industry and shopping center dynamics.

It is no secret that the retail shop industry is changing due to the impact of the Internet and the current economic circumstances globally.  That being said, the retail shop industry doesn’t disappear it just changes.  We are best placed has specialized leasing agents to help tenants and landlords move through the process of change when it comes to shopping centers and specialist retail properties.

Here are some tips to help you with creating your retail tenant mix and plans for shopping center leasing optimization:

  1. Check out all of the other competing properties in the local area.  They will have factors associated with vacancy, tenant movement, and tenant success.  Make a list of their tenants for direct contact and cold calling.  Some of those tenants will be more successful than others.  It is those tenants that you should encourage to move to your property.
  2. Look at the other competing properties with regards to property improvements, customer access, and customer profile.  Also look at the factors of car parking, public transport, and property size.  Are there any weaknesses in these factors that can be optimized in your property?
  3. The franchise groups in the local area will always be a good opportunity for tenant enquiry and new leases.  It is simply a matter of understanding the properties that they are looking for.  It is likely that they will have specific lease terms and conditions that apply to any premises that they negotiate on.  You will need to brief your landlord on the standard terms and conditions that the franchisor requires.  The franchise agreement needs to integrate with the lease of the premises.  Your landlord needs to understand that fact so that the business can operate within the branding and business agreement requirements of the franchise group.
  4. With any larger retail property, it pays to stay ahead of any lease issues.  They include rent reviews, options, and lease expires.  Look at all of these events at least 12 months in advance.  This then allows you to plan the interaction with the tenant given the conditions of the local property market.
  5. If you want to be a retail leasing expert, grow your knowledge with regard to business viability and different business types.  Some businesses have different requirements as to cash flow and occupancy costs.  If those requirements are exceeded, it is likely that you will have an unsuccessful and volatile tenant.  Ultimately that will mean a new vacancy.
  6. With your existing tenancy mix, consider the factors of expansion and contraction as they apply to each particular tenant.  Help the existing good tenants within the property to adjust the leasing needs and remain in occupancy.
  7. The anchor tenants in a retail property are very important to the overall success of sales, specialty tenants, customer visits, and market rental.  Stay close to the anchor tenants as part of an ongoing lease strategy.
  8. Retail leasing and shopping center performance are quite unique strategies to be developed for each landlord and property location.  It is not unusual to have a business plan developed for each medium to large property.  In that plan you will have income profiles, expenditure management, maintenance plans, tenancy strategies, tenant retention solutions, and reporting requirements.

Retail shop leasing is perhaps one of the most interesting and rewarding segments of the property market today.  That being said, it does require people that understand retail business and property viability.

Real Estate Agents – How You Can Be a Retail Leasing Specialist

In this property market, retail leasing is quite special.  It can be extremely rewarding from a leasing commission perspective, however it does require the right knowledge and the right person to attract the correct levels of business.

Given that the current property market is somewhat frustrating and slow, many retail tenants are quite critical of the properties in which they are located.  The relationship between the tenant and the landlord is critical to tenant retention and vacancy minimization.

It is interesting to note that many landlords managing their own properties tend to cut corners when it comes to maintenance within the property.  The landlords in that case are too close to the function of the property to make clear and sensible decisions when it comes to property maintenance and property performance.  They tend to look at the bottom line before they look at maintaining customer comfort and tenant performance.

A retail property is a careful balance between the landlord, the tenants, and the property manager.  In many respects, the interaction has to work very positively.

Here are some skills required of a retail leasing specialist today:

  1. Get to know the local businesses throughout your region.  Visit the competing properties to see what their tenant mix and property profile is doing.
  2. Market rentals will change from time to time.  The pressures of supply and demand will shift the market rental throughout the year.  This then says that you need to be very familiar with the current rental trends.
  3. Incentives for leasing will come and go from the property market based on the levels of enquiry and the amount of vacancy.  Lookout for those property developments that could throw imbalance into the property market.
  4. A good leasing specialist will have an extensive database.  Within that database you will have a significant number of local business proprietors, franchise groups, and landlords.  Constant contact within those groups will help you identify future leasing needs and opportunities.
  5. Successful tenant occupancy will occur from a well-chosen tenant placed in a good property and tenancy mix.  This then says that the tenant should be well chosen for the property and leasing placement.  Every vacancy should be looked at from the larger perspective of the property and the overall tenancy mix.

Retail leasing is a very rewarding part of the industry; that being said, it does require that special effort and knowledge on the part of the individual leasing specialist.  You can succeed in this part of the industry through deliberate focus and skillful marketing.