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.

Commercial Real Estate Agents – Leasing Tools that You Need Today

In commercial or retail property leasing, it is important that you are prepared for the property inspections that you take with prospects.  You only have a short time to create the interest of the tenant prospect and move them to a lease offer.

Here are some tips from our Newsletter.

So what is the focus of the leasing inspection? It should be to create the interest of the tenant and remove any questions that they may have regards the property.  To do this you have to be prepared.

Here are some leasing tools that you can use as part of the leasing inspection of vacant premises:

  1. Be aware of the competing properties in the local area.  The prospective tenant is bound to have seen those properties with other agents or at least be aware of the space availability and the asking rent.  You will have to know the differences in properties and why one rent is more relevant than another.
  2. The asking rents for your property should be in parity to the market rents locally for properties of similar type.  Have you checked that out?  Is your asking rent within the reality of the current market rents?  How will you pitch the rent requirement to the tenant when they challenge you?  How can you sell that rent package?  You will need to have your answers ready.
  3. Take some measurement tools to the property.  That will usually be a laser measurement tool to calculate distances, plus a measurement ‘wheel’ that you can use to walk around the property.  It is important that you do not certify areas and distances as you are not a surveyor, however you can give approximations to the tenant so they know approximately what factors exist in the property.
  4. Always have a camera with you to take photos of relevant parts of the property.  It is remarkable where those photos will come in handy in later conversation with tenants.
  5. Take a list of services and amenities in the property, together with fixed improvements that may be relevant and important to tenants in occupation.  Some tenants are very interested in communications and power capability in the premises.  Ensure that you have the information at your fingertips.
  6. When it comes to inspecting office premises, the tenants like to know about the finishes that are required in any fitout changes.  If your property is a modern property with quality finishes, there will be some guidelines to apply here when it comes to negotiating tenant fitout design and standards.  Get details of these things from the property manager or landlord.
  7. The plans for the property will show as built factors relating to structure, electrical, air conditioning, hydraulic, and lighting.  The plans will also show you where the riser is in the building for the tenant to tap into the property services.
  8. Take notes of all representations made and comments given in a leasing inspection.  Those comments could become critical in the ongoing lease negotiations.
  9. Lastly you should have a reasonable knowledge of the outgoings to be paid by the tenant in the property.  Those outgoings will be impacted by the type of lease to be used.  Those outgoings should be in parity with other properties of similar size and type in the local area.

When you are fully prepared, the leasing process and inspection becomes much easier.  Top leasing agents are always prepared to give the right information in the property leasing inspection.

You can get more tips like this in our Newsletter.

Shopping Centre Managers – How to Market Your Tenant Mix and Shopping Centre

In retail property performance, the trade of the shopping centre will be impacted by the marketing plan.  For this reason you really do need to establish a marketing plan soon in the management and leasing of a property.

The marketing plan and effort should be structured into all of the leases that are applied to the negotiations with new tenants as they enter the property.   In this way you can make marketing a component of occupancy for each tenant and impose a marketing levy that all tenants can contribute towards.

A well marketed retail property will produce more trade, and that is of benefit to the tenants and the landlord.  The marketing plan for the property can be part of the annual business plan for the property.

Here are some factors that can be incorporated into the establishment of the marketing campaign and plan for your property.

  1. All the tenants in the property will benefit from the marketing effort.  For this reason you should meet will all of the tenants in preparation for the plan creation and implementation.  All of the tenants will have valuable input when it comes to marketing, trade and customer needs.   In larger properties it pays to have a committee of tenants established to coordinate the tenant requirements and feedback.
  2. Ensure that the leases that apply to the tenants support the marketing effort in some way.  Check all of the leases for each and every tenant.  Some lease terms and conditions will have specific methods of handling the marketing efforts.
  3. Talk to the customers that visit the property.  They will have valuable feedback as to what they would prefer in the tenant mix and how they see the property today.  Any weaknesses can then be addressed in promoting the property and any leasing situations or changes that occur.
  4. The anchor tenant in the property has a special relationship to the other tenants and the landlord.  A successful anchor tenant that is matched to the property and the local customer base, will help improve the market rental and the property performance.  Keep in close contact with the anchor tenant to understand their trading pressures and customer findings.  This information will help the design of your marketing campaign.
  5. Your local area will have factors of seasonal shopping.  Those factors should be incorporated into the marketing plan.  When you consider seasonal shopping, you can spread your marketing into special local festivities and holiday events.  In this way a 12 month marketing budget can be structured.
  6. Have special regard for the transitional shoppers such as tourists and business people if that is a factor in your property performance today.  What times of day or year do they visit your property, for what reason, and how should that be integrated into your marketing efforts?

When you establish a good marketing plan for your retail property, you have something to track and shape when it comes to improving sales and trade.  In this way the market rental potential for the landlord is underpinned.  The tenants will also be happy with the customer numbers that are coming to the property.

Retail Leasing Tips and Ideas for Shopping Centre Leasing Agents

Retail leasing is a special part of the property industry.  With the right knowledge and skills it can offer you as an agent, real opportunity in listings and commissions.  Even in the tougher times when retail trade is under some pressure, good commissions are still to be had by retail leasing specialists.

The fact of the matter is that retail leasing is so specialised that only some agents have the knowledge or the focus to do it well.  Shopping centres do not disappear when retail shopping is under pressure; they just change the tenant mix and market their tenant offering more specifically and aggressively.

So what can you do to lift your focus and become a good retail leasing expert?  Here are some ideas to get you started:

  1. Research all of the shopping centres in your region.  Assess each property with due regard for age, customer type, tenant mix, market rental, and vacancy factors.  You will soon see some standards and trends that apply to a successful retail property.
  2. Local business owners will be a very good source of opportunity and leads.  Talk to all the retail tenants in other properties to see what they are doing by way of opportunity and how they view the current retail trading conditions.  Some of those business owners will be looking to relocate or expand premises.
  3. Review the standards that apply to the tenant mix in all the local shopping centres.  You will soon see the successful tenants in the mix standing out for unique offering and marketing.  It is those tenants that will thrive in most economic cycles.   Talk to those tenants about current retail trade and what they may be looking for by way of a new business location.
  4. Get to know the principles of ‘clustering’ as they apply to retail shopping centre tenant mix and strategy.  Well designed retail tenant ‘clusters’ are a part of a tenant retention plan and tenant mix strategy in any shopping centre.
  5. Rent types will change from property type to property type and location to location.  Get to know the trends of market rentals that apply to retail properties through your region and compare those rents across different properties.  As part of that process, include factors of outgoing and tenant operating costs in retail shopping centres.  You will soon see how tenants must trade to be successful.
  6. Marketing trends in a shopping centre are both at a tenant level and also at a shopping centre level.  The retail message has to be consistently spread around the shopping community and region.  Look at the marketing efforts that apply to retail tenants and shopping centres.  Good marketing will help the profile and trade of any shopping centre.
  7. Incentives will shift and change for new tenants in retail premises.  Any new development project will offer new and high incentives to attract tenants to their premises.  Monitor the retail developments coming up in your region.
  8. Retail shopping centre owners and shopping centre managers will need the assistance of a retail leasing expert from time to time.  It is important to know that these people know what a retail property is all about and they will expect the same from the leasing people that help them with any upcoming vacancies.  Make sure you know your facts, market, and tenant mix before you talk to these people.
  9. Franchise groups will move around the retail properties and region.  Get to know the retail franchise groups for the lease needs they may have.  As part of that process you will need to know their standard terms of occupancy and property requirements.

Retail leasing is a very special part of the property industry.  For those of us that want to specialise in retail, the rewards are many.