Top Ways to Reduce Retail Tenant Turnover

As an owner of a shopping center or mall, your profits depend upon your being able to retain good tenants over the long-term. Retention begins with choosing tenants that are the right fit for your property. Once you have good tenants, you can retain them by developing positive relationships with them, maintaining the property, providing good security, and completing regular inspections. A commercial brokerage firm can help you choose the right tenants and keep them happy.

Choosing Tenants

To be successful, a shopping center requires the right mix of tenants. Popular anchor stores help draw traffic to specialty retailers, so developing a solid anchor recruitment strategy is critical. You also want to ensure that the merchandise each tenant offers will fit well with the customer profile. And, of course, you will choose tenants with solid financials.

Developing Relationships

Keep the lines of communications open between you and tenants, and be sure you or your commercial brokerage firm are available when needed. Listen to tenant grievances and solve them quickly if possible. Streamline processes such as paying the rent so that tenants have more time to focus on their own business plan.

Maintaining the Property

Strive to keep the exterior gleaming. Pick up trash, powerwash sidewalks and parking lots, hire a landscaper, and refresh the outside with a coat of paint. Trade out old signs for new ones, and repair any damaged parts of the property promptly.

Providing Security

Security comes in two forms: securing the property itself and protecting the safety of customers and employees. Install and maintain alarm systems, cameras, and locks. Also, make sure the parking lot is well-lighted and provide a patrolling security guard in the mall and parking lot to provide emergency help and to remove those who pose a threat.

Completing Inspections

In most jurisdictions, regular property inspections are required. These inspections are important for ensuring the tenant is maintaining the property according to the lease and that no safety hazards exist. Conducting regular inspections also lets the tenant know that you care about the condition of the property.

Hiring Professionals

Hiring a professional commercial brokerage firm can help you to screen tenants. Good commercial tenants who are well suited to the property tend to remain for many years. Commercial brokerage firms also can help you manage your property and foster good relationships with tenants by responding quickly to their concerns. By helping you to retain tenants, commercial brokers help your investment yield a more consistent return.