When you run a retail real estate agency specialising in retail leasing and property management, you really need a top agent that knows what retail property is all about. The leasing of retail is very special; far more so than office or industrial property. The selection of tenants will be made with due regard to the tenancy mix and the customer profiles that access the property.
It can take a leasing agent some years to fully understand the complexity of shopping centre performance and how tenants should be selected for a current or pending vacancy in the property. The correct tenant selection will help boost the customer attraction of the property, and eventually the turnover or trade.
So what would you expect a retail leasing specialist to know or bring to you and your agency? Here are some tips to help you:
- Rents will vary from property to property. This change requires knowledge and experience when it comes to gross and net rents, together with the incentives that are available to lease premises to new retail tenants in your local area.
- Lease types together with the terms and conditions for a particular tenant will require negotiation based on the local leasing laws relating to retail property. In many respects, retail leasing is more complex and the documentation behind the process is more rigid and
- Tenant enquiry will change from location to location, however in retail property it is very much the case that the leasing agent has to get out into the business community and the other local shopping centres to talk to the existing tenants. In this way they will find tenants that want to relocate, expand, or contract. It is important to choose tenants that are at the top of their product or service offering.
- New shopping centre projects and development timing will have impact on your current shopping centre and its future performance. Always watch the supply and demand for retail space locally. Any new leasing specialist should track these changes and the availability of retail space coming into the property market over the coming 2 years.
- Property owners and new tenants that are looking for retail property are a unique breed unto themselves. They require understanding and a leasing expert that can talk ‘retail’ from many different angles.
- Franchise groups will require retail space to locate new businesses into. That being said, franchises are a business model that has particular requirements of location and customer base. It pays to have a leasing expert that understands how the franchises think and what they are looking for.
- Outgoings costs will have a major impact on rental (gross and net) as well as a tenants occupancy costs. Every retail property will have outgoings of a level that allows the property to operate efficiently and safely. The important factor here is that the outgoings for a particular property should be of a level that is comparable to other properties locally of similar size and type.
- Tenant mix and clustering are knowledge skills needed by a retail leasing expert. When the tenant mix is correctly structured it builds a better market rental for the landlord and helps reduce the vacancy factor in the property.
- Document knowledge and negotiation skills in retail property are quite unique when it comes to handling and working with small businesses. A leasing expert should understand what variables can be used in a good lease negotiation for a shopping centre or retail property.
So, all of these things would indicate that a retail leasing expert is a special type of person. Over time these skills can be learned; importantly the person chosen for the role has the right skill mix to take the role to the top of the industry locally.