Mall Leasing Strategies for Real Estate Brokers

Leasing a shopping center is a specific strategy in relation to location, property type, customer demographics, and owner. All factors come together to contribute to a successful leasing outcome and tenancy mix.

Needless to say, a successful leasing strategy will help increase the profit of the property. More customers will be encouraged to visit the property and purchase goods or services. On that basis, retail leasing is pretty special.

Here are some tips to help you rent a shopping center in today’s real estate market:

1. Understand the vacancy factors that apply to the campus or location. An excessive number of vacant leases will impact incentives and market rents. Check the supply and demand factors that apply within the region. Look for new real estate developments that can have an impact on the movement of tenants and the rental market.
2. Understand the types of incentives the landlord can offer to attract tenants. Also understand the requirements of tenants when it comes to incentives in today’s market. Any vacancies you have available for rent must match prevailing market conditions. That will include rental types and incentives offered. The lessor needs to adapt to market conditions. Get some details of comparable rentals and other nearby properties to help the landlord understand your vacant lease package.
3. It should be noted that a lease incentive cost must be recovered through the lease structure over the term of the lease. In other words, any money that is lost or made up in the availability of incentives must be recovered by raising and escalating the rent over the term of the lease. You can do this calculation through an assumption of market rents and a discount cash flow calculation. The net present value of the agreement can be compared throughout the duration of the lease.
4. Successful leasing executives generally have a substantial database of retail tenants to contact. Any new leasing opportunity can be offered through the database to specific tenants, anchor tenants, retail specialists, franchise groups, and other industry professionals. Any vacancies can be marketed directly to these groups through cold calling, direct contact, email marketing, and direct mail.
5. It is acceptable and normal to market a vacant rental through generic means. That will involve newspaper advertising and Internet listings. There are costs associated with that marketing activity and the landlord must contribute to those costs.
6. The most successful leasing transactions occur through leasing executive involvement and direct marketing to the right people. I come back to the point that the database of each broker or agent is quite important to convert more commissions and listings.

It should be noted that any quality property in a good location will generate good incoming inquiries. If you are selective about your property appointments and vacant leases, you will create more property leasing turnover and activity.