Retail Shopping Centre Renovation Strategies

As the retail property ages, the strategy for the property will shift and change. This is where the matters of property renovation and refurbishment arise. Not every property will or should remain within its current use or keep its existing tenant profile, and may be better suited for change. A property that does not change and adjust to community needs will reverse in performance and stagnate.

The astute investor will look for change as an opportunity; something to increase property use and performance. The demographics of the region and the demands of the local business and domestic community should be closely monitored so that this change can be seen and seized at the right time and in the right way.

So what renovation alternatives are available to the landlord when change is a real opportunity in the property? Consider some of these.

·         Renegotiation of existing leases. Keeping in close contact with tenants in the property will provide these renegotiation opportunities.

·         Exercise of options earlier than the lease requires. If a tenant exercises their option for a further term early, it gives the landlord surety of income and stability in that tenant location.

·         Working with tenants to provide timely expansion and contraction strategies. Many tenants will need to adjust their business and its size from time to time. It is usually better that you adjust for the tenant than you loose them to a competitor.

·         Updating the lease form to increase revenue potential. Good leases are created by good property lawyers that have considered the function of the property and the investment plans of the landlord. The resultant lease form can keep the property to a performance strategy.

·         Recovery of property outgoings and operating costs in a better or more expansive way. Building and property operational costs do go up. In this day and age it is common to have a structure built into the lease that allows the operational costs to be recovered in some way. It can be through gross or net rents, together with the structure of the rent reviews.

·         Creation of new tenancy space and leases. Where the property design allows, any areas should be checked for better use and layout. Using the 'as built' drawings for the property is a good place to start your planning for this.

·         Conversion of previously unused space to rentable space. This can include the better use of the common areas. Excessive open areas like these should be examined for better use and potential leasing. It is surprising how much vibrancy can be created in a property when the common area is split up into smaller kiosks and tenant areas.

·         Monitor the foot traffic in and out of the property so that high traffic areas can generate the best property profile and rental opportunity.

·         Integrate the community into your property more effectively through common areas and better services and amenities. You can also put a stage in the common area and offer it to community groups for free as part of an initiative to bring more people to the property.

·         Improve signage strategies so that the property is more visible and impacting to the community. In doing this it is important to standardize the signs and placement. This will include the tenant and common area signs so that they all give a quality modern impact to the property.

·         Paint common areas frequently. This gives the visitor to the property the right impression.

·         Require tenants to renovate their internal leased space at least every 5 years.

·         Establish a property business plan for each financial year and ensure that the plan incorporates lease initiatives together with income and expenditure growth or control factors (rent reviews, options, and outgoings recovery).

·         Lighting improvement is an easy way to give the property a cleaner and modern feel.

·         Reconfigure and expand the carpark on the property so that people can use the property more effectively and more quickly. As part of this, in some locations it is advisable to provide undercover car parking.

·         Integrate public transport into the property. This could be as simple as a bus stop in or outside of a retail shopping centre.

·         Encouraging tenants to do their own renovation in harmony with the centre's plans.

·         Lobby the local council or roads authority to install traffic lights and road adjustments outside your property so that tenants and customers can get to the property easily.

·         Upgrade the landscaping outside the property so that it gives a positive impression

·         Install a pylon sign on the property that brands the location and the property well.

·         Give the property a name that the community can relate to

We provide complete range of renovation works for office, home, factory & shop in Selangor.Pls Call 012-2988560.