Know-How Exchange : Strategy

This is a tough time for many mall management companies. I stopped at one recently and virtually every store had sales people just standing around....except for the Chick-Fil-A of course.

Probably the most appealing would be to reduce their risk by giving them free months. Not sure how many you can affort to give, but zero rent is the same result without a tenant as it is with a tenant.

When you are in a tough spot, no prospect will object to you asking "what 2 things keep you from agreeing today".

Michael

I'm having issues grasping the #'s-- 33 stores with 5K SF?? If that is true the stores are very small-- so small that the retailer considering space may be the issue.

If you are offering those small spaces your advantage is to get those running a shop out of etsy to lease a space.

If that is a typo-- ok, lets move on.

No matter what you either need an anchor or a plan to drive traffic. People don't want a retail space, they want sales. What is your plan to drive sales to your tenants?

And Phil's BRILLIANT suggestion for pop up stores (GAP, most major stores do those) may just be the ticket to drive traffic.

Start dialing!

The commercial real estate market is still struggling greatly. As Phil says, it's tightly tied to the economy--and won't get better until there is a decided upswing throughout the land. First interview and sign up with a reputable retail-specialist broker, someone who knows your local area's demographics and competition through and through and has a handle on knowing which retailers (local, regional and national) are (or might) be in the market. The commission you will pay is neotiable and part of your marketing cost(s). When you interview, ask her/him how they would go about marketing the property and ask what their co-brokerage plans would be. The more brokers you get to know about your property, the better. That means cold-calling, shoe leather usage and co-brokerage opportunties. In these tough times, it's best for a broker to have a 'half-loaf is better than nothing' philosophy. If not, it could be costing you in the long run. Many retail property owners/property managers, etc. are drawing attention by allowing non-profits or community based programs to utilize space on a short-term, low or no rent basis (one of my clients allow a Goodwill type company to use a space as a staging area for their upcoming preparation of food baskets and clothes sorting/distribution for the needy).
Best of luck,

jag
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