When it comes to retail property performance, the tenant mix is a critical part of the leasing strategy. Well placed and selected tenants will help you as the property manager build the customer experience for the property. The end result is a property with:
- Low vacancy factors
- Good levels of customer visits
- Optimised market rental
- Solid enquiries from the local business community for leasing
All of this means that the landlords property can perform well in the current economic climate.
Property managers and leasing managers should make the tenant mix strategy a key part of the annual business plan for the property. Some good ideas to merge into the plan would include the following:
- Base rental levels around which new leases can be created
- Types of rental that allow the landlord to recover a good part of the property outgoings costs
- Standard lease strategies that set targets on lease terms, options or renewals, makegood clauses, rent review processes, rent review types, etc.
- Strategies of tenant occupancy that support the anchor tenant in the property
- Early renewal processes for tenants that are desireable for ongoing occupancy in the property
- Clustering of like type tenants so you can build off the sales activity of each tenant
Tenant optimisation is a result of a great tenant mix plan and its implementation.
Landlords, tenants, and property managers are all part of the property performance package to underpin a retail property performance.