When the landlord appoints you to manage the tenancies within the tenancy mix in a retail shopping centre, it pays to adopt a specific reporting program that integrates with the business plan for the retail centre.
The landlord reporting process regards the tenancy mix should be integrated into the monthly property reports. A productive tenancy mix will underpin the income and vacancy profile for the property. On this basis the property manager or leasing manager for the centre should set benchmarks and KIP's regards the tenancy strategy for the ongoing two or three years.
Here are some ideas to adopt with the landlord reporting process and strategy for the tenancy mix.
The performance of the existing tenants within the property will be of interest and should be monitored. Performance benchmarks should be said regards the sales, customer service, and integration to the marketing of the overall property.
Advise the landlord of the upcoming rent reviews relative to each tenancy. This should be done some 6 months in advance so that the landlord has time to prepare for and gather the right market rental information.
When any tenancy is coming to an end of lease inside the next 12 months, it is imperative to identify the strategies and priorities regards the tenancy space. Questions should be asking regards any potential new lease to be offered to the existing tenant, and the strategies to be adopted should you require a new tenancy for the space.
The maintenance of the retail property will have some impact on the tenancy mix. By its very nature, retail property performance requires high levels of property presentation. From time to time you will need to move tenants around refurbishment activity. Make sure your lease allows you to do that, and coordinate the works with the tenant to ensure that trade is not disrupted.
Set some benchmarks each year regards the rent and incentives to be charged and raised in new leases as opposed to existing tenancies. There will be a difference for you to consider and plan for. Existing tenancies are likely to pay better than the rent that you would get from a new tenant given that the vacating of the premises is a cost and inconvenience for them.
Property operating costs and outgoings recovery will be a factor for the tenant mix and property planning. Both net and gross rent should allow for the appropriate recovery of outgoings. You can only do this when you know the history of the outgoings and what the current budget is.
Plan your tenancy mix well. Report to your landlord each month in an accurate way.
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