The management of retail property is generally more difficult and complex than the same process associated with office and industrial property. This is because the retail property is more active and vibrant in its daily activities. You need better people to manage retail property.
The management of a retail property takes more time, costs more to implement, and on that basis demands more fees for the process. Specialist property managers should adjust fees based on time and effort for this complex property type. Landlords looking for low fees and shortcuts should be avoided.
Each and every day you have people going to the Shopping Centre with a variety of interests, priorities, and needs. These people can be categorized as follows:
- Tenants as part of the tenant mix occupying the property in long term leases and also those areas of casual lease
- Customers coming to the property during the week (this will vary by type on different days and at different times)
- Contractors working within the property to maintain property performance and functionality
- Property management and marketing staff controlling the day’s events and helping the tenant mix and property operate with efficiency.
- Landlords often visit their property or may even be located in the premises
- Professionals associated with the property and the landlord (such as solicitors, accountants, and lenders involved in the performance of the property)
- Tourists, or workers and other transients passing through the area
So, all of these people have interests and priorities in the function of the property. This is where the factors of control come in that impact the property management process.
Just how can you control the needs of all of these people? Here are some ideas to develop and help you understand why retail property management is so special:
Good customer access and information on site is a number one priority – This will include car parks, signage, common areas, and facilities. Customers to the property should feel comfortable with the experience so they keep coming back.
Tenant mix management – Not all tenants are suitable for the location in which they are placed, or with the other tenants near them. This is where tenant mix optimisation is part of the retail management and leasing process.
Maintenance management – A retail property has higher levels of daily maintenance and on that basis has to be controlled. The factors of cleaning and wear and tear are higher in retail property.
Income and expenditure controls are very important to the function of the property. Any pending or existing vacancies should be dealt with quickly because a long term vacancy in a property influences nearby tenants and customer sentiment.
A retail property has to be marketed to the community and the shoppers that frequent the property. This is quite a specific task, and any errors made in marketing can have impact on the trade for the property.
From these points it is easy to see that a retail property manager is a special person that brings high levels of skill to the property and the landlord. Landlords should choose their property manager with care and seek evidence of relevant successful experience in other properties.