Tips for Leasing Retail Property Today

When it comes to leasing Retail Property today, the tenancy mix and the tenancy stability within the property are more important than ever before.  Tenant optimisation and tenant retention plans are essential parts of the business plan for a retail shopping centre or retail mall.

Every retail shopping centre should have a tenant optimisation plan and it should feature in the property business plan as it is updated annually or more frequently. 

Essentially these plans include the following:

1. Recommended terms and conditions to apply in any new lease to be generated in the property.
2. Terms and conditions to structure the renewal of existing leases with sitting tenants.
3. Standard lease terms that have been drafted to suit the investment plans of the landlord
4. Forms to be completed in the case of a lease offer prior to the establishment of an agreement to lease
5. Strategies regards anchor tenants within the property
6. Tenant mix placement and lease optimisation of specialty tenants around the anchor tenancies
7. Clustering concepts to apply to tenants of like type and similar customer base
8. Strategies that can apply in the case of a need for tenant expansion or contraction as the case may be
9. Rules for the first rights of refusal between tenancies in prime locations around the shopping centre
10. Lease strategies that should apply in the case of tenancy default and unexpected vacancy
11. Short term lease or licence occupancy for prime positions in common areas.
12. Strategies to apply in the case of renovation and relocation requirements in and around the property
13. Rules that should apply to tenancies located in prime traffic areas and peak sales locations

The leasing of property today and the planning of leases for the future should not be looked at in isolation.  All leases in the tenancy mix should be considered in balance to each other.  Any vacancies should be those that are planned. 

A good retail shopping centre manager should achieve this outcome through sensible lease management and early negotiation.

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