Ever notice how one shopping center thrives, while another, very similar shopping center, drowns in vacancies?
Similar location, similar demographics, even similar leases rates. But one center is consistently profitable, with little or no vacancy. And the other is constantly struggling to fill two or three perpetually empty spaces.
What separates these two properties? What’s the differentiating factor?
What is Tenant Synergy?
Try to imagine your shopping center through the eyes of your tenant’s patrons. When they arrive at your shopping center, why are they there? What do the need?
For example sake, here are a couple of quick scenarios…
Typical Neighborhood Center in Middle-Class Community
Let’s say a guy needs to have his dog groomed…
-He drops Fido off at the groomers.
-With some time to kill, he stops by the medical marijuana dispensary.
-After picking up his “prescription,” he’s feeling a bit hungry, and orders a turkey and Swiss cheese sandwich at the quick-serve sandwich shop.
Or let’s say women needs a manicure…
-After work she stops into the nail salon and has a mani/pedi
-Nobody cooks anymore, so after the nail salon, she picks up Chinese take-out for the evening’s family dinner.
-And what’s dinner without a little libation? So she grabs some beer and wine at the mini-market to go with the take-out.
Neighborhood Center in Lower Income or Predominately Hispanic Area
Let’s say a domestic worker needs to cash a check, take her son and daughter to the dentist, and pick up a few items for dinner…
-She stops by the Check Casher and cashes her paycheck.
-Drops the two kids at the dentist for a check-up.
-And picks up a few grocery items at the mini-market before they all head home
Or an independent contractor handling landscaping or construction work needs to get a loan for ready cash in advance of his next pay check, and then pick up dinner or basic groceries for his family…
– He stops at the Payday Loan and arranges a quick short term cash loan
-Orders dinner to go from the taqueria
-Picks up milk + bread from the mini-mart
Right Tenant Mix Serving the Right Community
Tenant synergy is borne out of a complementary tenant mix serving the surrounding community’s needs.
And assembling this kind of tenant mix in your shopping center is exactly what will keep it fully leased and financially productive.
So How Can Professional Leasing Establish Synergy in Your Shopping Center?
As a landlord, you may be aware of how complementary tenant uses contribute to the productivity of your property. The concept is fairly intuitive.
But when a tenant vacates your center, how quickly does the ideal replacement occur to you?
And even if an ideal replacement does immediately come to mind, how well are you connected with suitable tenants, or tenant rep brokers, to fill that vacancy?
Leveraging Contacts + Connections
A professional retail leasing agent speaks to hundreds of prospective tenants and highly active tenant rep brokers every week. That’s thousands of conversations a month. All of which revolve around a particular type of tenant seeking a space in a specific area.
And a consistent percentage of those conversations result in executed leases.
In other words, a professional retail leasing agent knows which types of tenants are seeking space in what areas, and can funnel those tenants into corresponding vacancies.
And if the agent is representing your property, that means they’re funneling said tenants into your vacancy.
Find Out More About CBM’s Retail Leasing Services
Visit our Leasing Services page and find out more about how CBM professional retail leasing services can fill your vacancies with complimentary tenants – and create synergy in your shopping center.