FEATURE
Strategies for Success: 3 Tactics for Working with Small Tenants
M
aryam just knew her idea to open a children’s bookstore in her local mall was a winner. She had never opened a store before, but it was her hobby and she knew lots of families were moving into the area. She figured it would be easy to gain potential customers. Due to the pandemic, several spaces in the mall had been vacant for almost a year and Maryam was willing to take a space with limited visibility. Daniel, the landlord, liked Maryam; she was very enthusiastic. After all, one of his best retailers had convinced him the idea would be a sure-fire hit. Fast forward to Maryam’s opening day: When Daniel visited Maryam’s store, he realized she had tried to save money by postponing fixture delivery. Merchandising seemed scattered and her exterior sign wasn’t up. She met him at the door to ask for a deferral on her first month’s rent.
Shannon Alter, CPM Owner Leaders Exceed
What was the problem? When times are tough, it can seem like filling a vacancy with any retailer means progress. Although it’s tempting to take the immediate solution, leasing to small tenants (under 10,000 SF) often fail due to these common challenges: inadequate finances, no business plan, faulty customer service and limited marketing strategies. Often, this means these tenants move out almost as soon as they move in. While owners and managers cannot guarantee every retailer will succeed, they can increase the likelihood of success with 3 key tactics:
“Sometimes when
there has been a lull in the market, we just want to put a tenant in the space. As a result, the caution we exercise in lease negotiations is thrown to the wind.
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RETAIL PEOPLE . NOV - DEC 2021
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