Shopping center leasing strategy: how to create a cluster in the mix of tenants

When you manage or rent a commercial property, it is important to maintain the success of the tenants and the property. The key to the process is the mix of tenants. If you get the tenant mix wrong, people won’t come to the property; over time, the vacancy factor increases and rents become unstable. That’s the start of an income disaster for the property owner.

So it’s not just about having the right tenants in a property; There are some other factors to consider such as:

• Tenant placement in and around the property.
• The time or hours that the property trades
• The number of tenants in the property how
• The anchor tenant and their future occupancy intentions
• The reason buyers come to the property
• Factors for vacancies now and what is known to occur later
• Grouping of tenants in a pattern that works for a better buying experience

Let’s look at the last item in the list for now. Clustering is essentially the process of placing tenants close to one another considering that customers buying from those tenants could buy from other similar or complementary tenants nearby.

When a customer is buying something, they are inclined to buy again relatively soon. Having tenants close to each other allows for that trend to occur. For that reason, you can create a ‘cluster’. This is an example of a successful cluster:

1. fashion for ladies
2. Women shoes
3. Jeweler’s
4. Fragrance
5. sportswear for ladies

All of these stores would work quite well in the same area or group. The group could be placed next to the main tenant of the department store.

When you get a perfect pool, you can look to introduce alternative tenants to the area who can encourage buyers to stay in the common area around the pool and buy more. That’s where you can find coffee shops and pastry shops. A successful tenant mix is ​​a planned process.

So a good retail leasing executive knows how to make clusters work at a retail property. Everything has to fit the buyer’s requirements and the known changes in the demographics of the region.

A tenancy mix can be shaped using lease expiration and known vacancy factors on the property. For the client who visits the property, he just wants to have a good time and get what he wants in a convenient way. The moment a commercial property stops doing that, rent and vacancy problems begin. Plan your commercial property for today, but always look to the future and make wise decisions regarding tenants in your tenant mix.