In retail shop leasing and shopping centre leasing today the tenants and the landlords that you work with require special understanding. Retail leasing is a special part of the property industry. If this part of the industry is for you, then you will need to build your knowledge and understanding of many things.It is no secret that the shopping centre industry and retail shopping is under some pressure currently. That being said, there will always be shops selling things and goods to buy. It is just a matter of what people want to buy and how the retailer adjusts to the process of manufacture, supply and sale.
The internet is placing some factors of change on the way people buy goods. If a shopper is prepared to wait a few days or weeks they can get their required product at a cheaper price than if they were to buy the goods across the counter. Online sales will always be cheaper due to the lack of retail shop overheads. I still go back to the point that retail shops will not disappear; they will just change.
As a retail leasing expert you need to know many things. Here is a list of some of the main ones.
- Understand where all of the local shopping centres are located and determine why they are successful today. As part of that process you will need to check out the shopper demographics in each case.
- Some retailers will be more active than others, given the goods and services offered. Talk to the successful retailers to understand what is working for them today and if it can be replicated for other retailers.
- Franchises are fast becoming required business to have in your retail tenant mix. The advantage with franchises is that they have an established business model, and the branding attracts customers to your property. That being said, they do have standard terms of occupancy that will need to be understood.
- Occupancy costs for tenants are a critical part of property occupancy. There is a fine balance between unrealistic levels of rent, and acceptable rent levels. You do not want to lease premises only to find the tenant going broke in 6 months.
- In the local area you will find that some newer property developments will place pressure on your tenant mix and therefore escalate your vacancy factor. Be aware of the new developments coming into the property market and how they are attracting tenants to take up a lease in their property.
You can make a very good career in retail shop leasing and shopping centre management. The fact of the matter is that you will need to specialise so that you have got the knowledge to provide real and relevant retail services to the tenants and landlords that you serve.
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