7 Keys to a Successful Shopping Centre Marketing Campaign

When it comes to leasing and managing a shopping centre, the marketing process is absolutely critical to the tenancy process and the property performance. There is a significant link in a shopping centre between customers, tenants, the landlord, and the property manager. The common bond that allows all of these parties to succeed and grow within the property is marketing.

Look for the Signs

If a retail property is not marketed correctly, it will soon start to flounder and fail. This will eventually reflect in poor sales and flow through to lower levels of rental. The landlord and the tenants both suffer. It is easy to see the pressures of a undermarketed retail property today simply by walking around the property during trading hours.

A successful marketing program for a shopping centre needs to attract customers and generate sales. The program needs to connect with the local community and the demographic profile of shoppers in the area. It may also be that some shoppers will come from other regions for various reasons.

Know Your Shoppers

To understand the shoppers that visit your property, it will be necessary to undertake a survey process on a quarterly basis. That will normally be involving experienced survey personal to interview shoppers throughout the week and at various times of the day. Local workers and tourists may also skew the result of your marketing survey. Be aware of these variations.

Here are some tips to establishing a shopping centre marketing campaign.

  1. Look at the surrounding area and the expected changes in the regional population. In what ways will that population demographic change in coming years? Are there any expected growth phases, or issues of contraction?
  2. Visit the local council offices to understand the current zoning regulations that apply in the region. Ask about any expected changes to the property development plan, and get details regards the expected growth of population and residential areas.
  3. Competing properties in the local area should be identified and inspected. They will have impact on your property currently and may be taking some of your customer base already.
  4. Identify the points of difference between competing properties and your property. Look at the tenancy mix across any competing property and any weaknesses that can be turned into opportunities for you.
  5. Vacancy factors throughout the region should be identified. They will change from time to time throughout the year as seasonal shopping impacts the retail spending. Asking rentals for vacant tenancies in other properties may have an impact on your market rental structure. Track these numbers.
  6. Your local region and the shopping patterns identified will produce seasonal retail trade. The history of your property and tenants trading figures will give you some hints as to how that variation occurs. A marketing program needs to be built around the seasonal shopping patterns.
  7. Talk to the tenants in your property and ask them about trading patterns and customer numbers. They will share valuable information to help you improve awareness on sales opportunity.

When you take this regional information into account and drill down into the facts available, you can start to refine and develop a productive marketing campaign for your retail property.

Retail Shopping Center Performance Tips for Brokers and Agents

In reviewing the performance of any retail shopping centre there are many things to look at. As a type of investment, the typical retail property is dynamic and active in many ways. A true property professional will review all the facts before getting involved in property marketing or any sale or lease. Many things should be understood first before any action is taken.

What makes a retail property so different? It is integrated heavily into and involving the stakeholder’s interests; the stakeholders are the landlord, the tenants, customers, financiers, managers and leasing specialists. In an ideal investment situation the retail property manager would be balancing the tenant mix to improve retail sales and lessen the vacancy rate, and then to take steps to improve the landlord’s net income. Within those two issues there are many things to look at.

It can be said that retail property managers are perhaps the most specialised in the property industry. Their knowledge, skill, and systems will have a major impact on the property overall. On that basis the retail management fees paid today in a quality property should be substantial to cover the time required in property control and optimisation. The management processes and leasing activities in a retail property are intense. Mistakes or omissions made can impact the property in many different ways.

So here are some basic factors to help you get started in checking and optimising retail property performance from the aspects of the leases and tenants. You can add to the list based on location and property configuration:

  1. Tenant mix – review the tenant mix in all respects. That will include lease documentation, critical dates, tenant offering, sales performance, and lease longevity.
  2. Lease terms and conditions – in a property you will have many leases. All of them will have lease terms that are unique to the premises and the lease situation. You must know about the leases before any sale or marketing proposal is contemplated.
  3. Sales figures – most good retail properties will be tracking sales turnover by retailer. This will be done as a standard term and condition of the lease. The numbers will show segments of trade and the MAT average over time. MAT stands for Moving Annual Turnover and it will show how the sales figures are trending in retail segments in a shopping centre. It is a valuable analysis. It helps you see weaknesses in trade, tenant mix, lease structure, and clustering.
  4. Vacancy factors – given that you have leases in a property, you are likely to have vacancies as well, together with the threat of a vacancy with tenants getting to the end of lease occupancy.

Looking at all of these things you have the basis of understanding just how the tenants and leases impact the property and its current cash flow of rental. From that point onwards you can look at other associated issues such as outgoings, net income, and customer interaction.