When it comes to managing and leasing commercial or retail property, the tenancy mix will always have priority when it comes to the overall strategy and the function of the property. Every significant and important retail or commercial property should have a tenant mix plan and a tenant retention plan.
When these plans are established, you can optimise the performance of the property in the directions that the landlord requires. It is no secret that the property market is under some pressure at the moment. Global economic trends, retail shopping, and business sentiment all place pressure on property performance and tenant occupancy.
Here are some tips that can be applied to your overall tenancy mix strategy. As a commercial or retail property leasing expert, these factors should be structured into your services and specialisation.
- The best tenants should be identified in each and every property that you manage or lease. Those tenants should be given specific focus and attention when it comes to lease occupancy requirements. It is wise to meet with these tenants on a monthly basis to ensure that you know their intentions and any pressures that may be applying to the business currently.
- Lease terms and conditions will vary by property type, landlord, and location. In some circumstances, there are specific terms and conditions that should apply to the arrangements between landlords and tenants. As the leasing expert, you should know what those terms and conditions are, and give guidance to the landlord as appropriate when they are in negotiation with a new tenant.
- Anchor tenants are an important component of property function for many reasons. Most importantly, they will pay the majority of the rent for the landlord. That being said, the anchor tenant also provides stability for the image and function of the property. Any specialty tenants in the property will build their business around the activities of the anchor tenant. Make sure you understand the lease intentions of the anchor tenant and the current trading situations.
- Specialty tenants should be chosen for their property offering and retail offering. Specialty tenants will be selected for the best position within the property that suits their business needs and services. Stay close to your specialty tenants as part of the lease management system and overall property strategy.
- Market rental will change from time to time based on the local market property activity. You need to know what the changes are when it comes to rental and how the rental will be impacted by the supply and demand for future premises and occupancy. The market rental can be either gross or net, and incentives will have impact on the rental.
- Understand the factors of outgoings costs that apply to a property type. For any property to be successfully least, the outgoings should be within standards that are acceptable for the property type and the location. Most tenants will avoid any property that has high outgoings.
- Competing properties and any new property developments should be understood for the pressures they apply to your subject property. Inspect any other properties locally that have interaction with your customer base. Look for any changes in their tenancy mix or product offering that could pull customers towards their tenants.
- Landlord investment intentions will change from time to time. Those intentions will have impact on the leases that you negotiate. Be aware of the landlords intentions so that you can adjust your negotiations in any upcoming lease situation.
- Property age will have impact on property refurbishment and renovation. The tenants in the property will need to be moved around that activity and the leases may even require renovation and relocation clauses as part of lease negotiation. Consider the factors involved, and the legalities of using these courses as part of lease occupancy. When it comes to retail tenancies, some special terms and conditions may be required has to advice and timeframe.
Every property will improve when you develop a strategy for the tenancy mix and the tenant retention plan. To those points above, you can add factors of location, and property type. In this way you can be seen as the property leasing expert that landlords require.