A successful commercial property is filled with viable tenants—healthy tenants paying rent and creating synergy with other co-tenants. Thus, if a successful shopping center is defined by its tenants, when was the last time you visited one of your tenants as a customer?
A surprise check-in every once in a while can provide a number of valuable insights on the property and tenant health.
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
How’s that new tenant doing? How are the older tenants doing?
A new tenant opened its doors, but has the tenant met all expectations when it comes to tenant improvements? Are services and products being provided or sold in the manner expected? Equally important: how are your older, established tenants fairing? Are their formats competitive and fresh, or are they tired and lacking ‘pop’?
How busy are your tenants on a mid-week night?
This is a great way to really understand the health of a tenant and your center—how busy are the tenants at off-peak hours?
Did they roll out the welcome mat?
Does the florist greet you when you walk in? Does a cashier say thank you? How was the overall shopping experience? We can’t direct how a tenant’s business should be run, however, it is important to note that customer service skills, and the ability to retain business, does eventually impact a property.
Who are your MVPs?
Each tenant is valuable to a property for a variety of reasons, but there are particular tenants that might be your less-obvious MVP’s (or MVT’s!): tenants who run a clean, quality operation; attract customers and have a very loyal community following; those who very directly affect the health of co-tenants. These MVP’s need to be identified and factored into the long-term strategy.
An experienced property management team is focused on maintaining good communication with tenants to ensure that needs are being met and problems are always being addressed proactively. However, never underestimate the insight an owner might gain on a surprise visit. These insights can also provide owners personal reference points when interacting with the property management team on asset and leasing recommendations.