Know-How Exchange : Strategy

What part of the world are you in?

I would think that -- at least here in the US -- any retail property owner or manager would be excited about any and all possible tenants.

Without knowing all of the facts, I can come to only one conclusion: They don't take you seriously.

I don't know what kind of space you're looking for (size or location), and I nothing about your finances, but are you 100% sure you're financially capable of securing a lease?

Maybe times have changed, but in the past it was nearly a universal requirement that you had to post a letter of credit before you would qualify for a lease, especially if you asked the landlord to spend money on building the space out.

If you are fully qualified financially to enter into this transaction, you need to make that known -- loud and clear. That will ensure response.

I've had similar experiences in the past. In the end, it came down to two things:

1. The leasing managers did not fully understand the retail concept we were proposing, and,
2. We simply were not offering enough rent to beat our competitors for the available tenancy space.

Not sure what the problem is in your case but if your proposal presentation to the mall operators is anything like your question, it probably leaves them guessing.

So - we need to ask you direct questions to help us formulate an appropriate response:

What is the basis for the rental negotiation?

Are you offering the asking rent?

Is the negotiation a competitive pitch, i.e. are you losing out to a competitor each time?

Or are you losing out to an operator in a completely different category?

Major shopping center operators usually want a tenant of substance who can back their personal guarantees with something concrete, i.e. real estate ownership. What guarantees are you being asked for? Can you support them?

If getting into a shopping mall is a major objective for you, and you have a strong retail concept and product range, try approaching a mall anchor tenant - department store or similar - and see if you can get your product featured inside their tenancy as a kind of store-within-a-store concept.

That might be a way of trialling in a particular market without having to deal directly with the mall owners.

Come back with more facts and you'll find you get a far better response.

ChrisB

Did you do research on the shopping centre and meet with the centre manager? It's not just about your plan, it's also about meeting the needs of the shopping centre and its tenants collectively - to ensure a really good tenant mix which attracts footfall and spend. Therefore you should perhaps adjust your plan to meet the centre's needs and explain how you will enhance the tenant mix and attract more footfall.
Maureen

Hi kallaselie,

I don't have any experience in shopping centres in Lebanon but I do here in Asia.

Getting the big malls to take a small brand seriosly can be tough. Put yourself first in the shoes of the leasing manager. The job of the leasing manager is to maximise the rental incomes from the available space and also provide a diverse mix of intersting shops that offer good value and quality for the buyers to ensure that the shoppers keep coming to the mall.

before you speak to any mall operator and or shopping centre, visit the site and take note of how many different kinds of stores they have in each category.

Fashion / clothingh
Toys / games
furniture / decors
Books / school supplies
Jewelry / watches
Sporting goods
etc. etc.

Also check if they actually have any availble space to lease :)) If they are full, then you will for sure have a hard time to get a place.

If they have a space available, you will probably find that there is a two or three years waiting period just to get in line to make an offer on the space )that is how it is in Asia at least ).

THe best advise from the earlier posts is 'find out who the leasing manager is'. Go and speak to them directly, invite them for tea (or coffee :) ) send that person a nice note every few months with a little good news about how well your brand is developing and how many new stores yopu have opened.

Be pacient, keep knocking on their door everey few months to remind them that you are there and sooner or later, they will call you and ask if you would like to take a small space.

Initially, they will always give you teh worst space at the end of an alley on the top floor with the least foot traffic :) THey do this to see if you can sitvivie and how much revenue you can genertae before later moving you to a prime locatio, - THis could take another two years :).

Be patient.

Good luck.

Matthew