Suzanne Hausknecht - Marketing and Leasing: Retail

Suzanne Hausknecht

Mindy Wallis

2015 by the Institute of Real Estate Management

of the NATIONAL ASSOCIATION OF REALTORS

All rights reserved. Published 2015

Printed in the United States of America

10 Digit: 1-57203-225-1

13 Digit: 978-1-57203-225-5

Ebook ISBN: 978-1-57203-233-0

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Suzanne Hausknecht

Mindy Wallis

We would like to thank the following Review Team for taking time from their personal and professional schedules to provide content and to review this book. Their dedication and support of IREM are greatly appreciated!

REVIEW TEAM MEMBERS

Mez Birdie, CPM Maitland, FL

Shannon Alter, CPM Santa Ana, CA

Richard Muhlebach, CPM, SCSM, CRE, RPA, Woodinville, WA

This book covers effective marketing and leasing tactics specific to retail properties that help achieve the right balance of retailers, increase retail traffic and generate greater sales per square foot.

The following topics are covered:

• MARKET ANALYSIS. Regional and neighborhood demographics and psychographics, trade area mapping, market share analysis, comparison grids for establishing average market minimum rent
• MARKETING STRATEGIES. Shopping center marketing tactics including brand development and social media
• ESSENTIALS OF THE LEASE. Key elements, retail lease provisions, concessions, and lease renewals
• LEASING STRATEGIES. Tenant mix and placement, broker commissions, and qualifying retailers

A real estate managers knowledge of retail property characteristics and economic factors is necessary for the development of an effective marketing and leasing plan. A property manager must be able to identify shopping center characteristics and the typical duties of the management and leasing staff.

Whats in this chapter:

• Shopping Center Configurations and Types
• Other Types of Retail Properties

A shopping center can be defined as a group of commercial stores developed, owned, and managed as an entity. The stores are related in location, size, and type and on-site parking is provided. The centers size and orientation are generally determined by the market characteristics of the trade area served by the center. Shopping centers have traditionally had two main configurations that are apparent in a variety of shopping center types.

Shopping centers have two main configurations, mall and strip center. A mall is two rows of stores separated by a walkwaywhich may be enclosed or open air. A strip center is a row of stores facing a parking lot. Strip centers may be in a straight row, L-shaped or U-shaped. In addition, various hybrids of the traditional mall and strip center configurations exist.

Did you know?

One of the most unique shopping centers in the world is the Dubai Mall in the United Arab Emirates. With 1,200 shops, plus an aquarium and an ice rink, it attracts 65 million visitors.

The definitions below are meant to be guidelines for understanding major differences among the basic types of shopping centers. Several of the categories shown below, such as size, number of anchors, and trade area, should be interpreted as typical for each center type. They are not meant to encompass the operating characteristics of every center. As a general rule, the main determinants in classifying a center are its merchandise (types of goods/services sold) and its size.

Regional Center

• Provides general merchandise (a large percentage of which is soft goods) and services in full depth and variety.
• Main attraction is the combination of anchors (may be traditional, mass merchant, discount, or fashion department stores) with numerous fashion-oriented specialty stores.
• Usually enclosed, with stores having an inward orientation and connected by a common walkway.
• Parking surrounds the outside perimeter.