A mall is more complicated to run as there are a number of details that need to be considered. Factors such as rental contracts, tenant relations, rental rates, security, maintenance, and more are critical to any commercial property’s operations. That said, mall management companies will only be able to stay on top of their responsibilities if they are aware of this. If they aren’t, tenants won’t renew their rental contracts, customers won’t walk through the doors, and you, the investor, will have to deal with multiple vacancies. But if they are, you’ll be able to benefit from a profitable property.
If you’ve invested in a mall – or if you plan to – we’ve compiled a couple of tips on how to manage it in this post.
1. Get the Location Right
The location plays a critical role when determining what type of businesses will be in the mall, and what type of mall it will be. When it comes to mall placement, it’s important to conduct a survey that covers the demographics, income levels, etc. of the customers where the mall will be built. Not only does this enable you to position the mall in the proper place, but you’ll also be able to identify what type of retail tenants you need. In that way, you can also ensure that your mall actually sees visitors.
For instance, if your mall is in a middle-class area, it wouldn’t make sense to build a mall with establishments such as Dior, Louis Vuitton, and other luxury brands. Instead, it would be better to rent to retail tenants such as Payless and JC Penney. In short, you need to make sure you meet your market’s needs.
By scoping the location, you’ll also be able to set your property apart from competitor malls. If there’s already a mall in the area, find out what you can add to yours to differentiate it. After all, why would customers visit your mall if you have the same services as any other mall?
2. Know How to Promote the Mall
Mall management companies should know how to market the mall. Apart from marketing strategies such as social media networking, mall managers know that events can get people to come to the mall. A professional property management firm will be familiar with promotional strategies like food fests, book fairs, contests, and more. These are all designed to draw foot traffic toward the retail center. And the more people there will be, the more buyers there will be, as well.
As a rule of thumb, your mall should be more than a place to buy items – it should be a place where people can come to unwind, too. Conduct events that will draw a large audience to your mall, such as musical contests, concerts, auditions, celebrity visits, and more.
3. Pick Your Tenants Properly
Choose your tenants wisely, otherwise, the rest of your tenants will resent you. When it comes to commercial property management, it’s important to provide your tenants with the opportunity to generate great revenue. However, you won’t be able to do this if you rent to the same type of tenant, as this will force them to compete.
It’s extremely vital to “mix” your tenants to ensure that every one of them has a shot to succeed. Multiple tenants of the same type are fine, but if you rent to more than what’s realistic, your tenants won’t be able to make money to pay their rent. For instance, if there are already three ice cream shops in your mall, you can stop there. Choices are fine, however, too many of the same type will confuse your customers. You can give customers variety, but don’t go overboard.
If you don’t have experience “mixing” your tenants, you can partner with an expert property management agency. They will review what type of business your tenants are in, and find out if it would be feasible to rent them with the rest of your tenants in the picture.
4. Take Safety Seriously
Safety should be of prime importance. In the event of a fire, violent crimes, etc. your mall managers should be able to respond immediately. They should be able to communicate with your commercial tenants as well as get guests to safety. Individual visitor safety should also be considered, as a mall can be a dangerous place, considering the number of accidents (such as slip and falls, elevator accidents, etc.) that occur every year.
Every floor of the mall should have a security guard to guarantee guests’ and tenants’ safety. A commercial property management company can direct you to a reputable security company to hire a security guard for your mall.
5. Stay on Top of Maintenance and Repairs
A retail property’s maintenance to-do list doesn’t end. For that reason, it’s crucial to create a property maintenance plan with a focus on proactive activities. At its core should be routine maintenance, as this is what will allow you to remedy problems before they can become worse. You’ll be able to stay on top of maintenance, as well as lower the chances of costly repairs later on.
You need to prepare for repairs, too. At any time, the elevator can stop working, the windows can get broken, the roof can leak, and the list goes on. With that said, you will want a network of vendors who are familiar with mall maintenance. If you’ve partnered with a commercial property management company, you should be able to access their reliable vendor network.
Mall Management Services in South Florida
At Luxury Property Care, we want you to meet customer and tenant expectations, which is why we provide our expertise in mall management. Through our shopping center management strategies, we can guarantee that your mall will become a vibrant location for South Florida visitors. That way, it will generate a consistent stream of income and allow you to meet your investment goals. With us by your side, your mall will not only be well-managed, but popular among locals for a long time.