When you take over a property’s leasing, always begin with the market study. The market study tells you the market rents, which you then use as a benchmark for your prospecting.
Keep in mind that different spaces within the center require different rental rates. A second story in-line space will be a lower rent than the first floor end-cap, or else you’re getting fired!
Next, list any exclusives from the existing leases and put them on a blacklist so you do not waste any of your time (and money!).
The next step is to determine your TOP FIVE USES you want in the shopping center. My three factors for determining the Top Five Uses are:
- Size of the space
- Is the space impulse or destination
- Demographics Size is the most obvious one
Drive around your market and take notes of what kind of tenants are in the same size space as your vacancy. This will give you ideas.
The location of the vacancy within the center defines it as an impulse or destination space. The visible spaces, like outparcels and street spaces, are classified as an impulse. People can see the tenant from the road and impulsively decide to shop there. Whereas the space in the elbow of the center with zero visibility from the street is classified as the destination. This is where you put your national tenants and strong local tenants who don’t rely on impulse shopping. Appropriately delegating spaces to the right tenant will lead to the long-term success of the center.
Lastly, the demographic is ultimately the most important factor. No matter how well you do everything else, the demographics will make or break you. Don’t put a botox specialist in a low-income center. Don’t put a cash-checking business in a high-income center. Don’t put a children’s pediatrics clinic in a gentrifying center.
Once you have taken each of these factors into account, draw up your top five and devise a strategy to prospect these types of tenants. This will lead to the long-term success of your centers, as well as a more strategic use of your time.
CLICK HERE TO DOWNLOAD THE TOP 5 USES WORKSHEET
LEARN MORE:
Time Management Tips from Beth Azor
What To Do When You Can’t Lease Space
How to Find Spaces That Are Not Yet on the Market
New Trends of Expanding Retailers
