Most tenants in a shopping centre today are of the smaller business type. The tenants are usually centred around a ‘family business’. They thrive when the shopping centre is performing well; they struggle when the reverse is the case, given that it is the only location or one of just a few that they operate from.
It stands to reason that a successful shopping centre is built around well-chosen tenants that are trading at good levels. So, if you manage or lease a shopping centre today, the tenants that you communicate with are the foundation of property performance and occupancy.
Can you improve your tenant relations this year?
Are you watching the lease and occupancy changes at the property and are you prepared to negotiate leases early? There are things within that to think about.
Work the Tenants and the Mix
Keep in close contact with all the tenants in the tenant mix, and watch the interaction of anchor and specialty tenants in the property from a customer and client perspective. Then look for the tenant strengths and weaknesses and work with both. Tenant weaknesses can be resolved, and the strengths of a few tenants can be optimised for the greater benefit of the entire property.
Here is a tenant contact management plan that could be used in most retail properties over a 12 month period:
Look at all the leases coming up for expiry in the next 24 months. Decide what tenants you would like to keep and those that are not quite as high on the priority list for ongoing occupancy.
Package up some lease offerings for your ‘A Grade’ tenants so you can renew their leases early.
Create meetings with all your major tenants on a monthly basis.
Meet with all specialty tenants at least once every 90 days
Create minutes of tenants conversations and meetings so you can react to or action any important issues early
Look at the dynamics of the tenant mix and how the various merchandise groups are performing in comparison to each other.
Create tenant management guidelines and lease negotiation documents within your retail property business plan. You can monitor your actions and decisions within that concept every 90 days as part of the property performance ‘check-up’.
So, these items form the basis of a tenant management plan and tenant retention plan in retail property. Forward planning like this will help you optimize the overall property performance and the selection of tenants into the future.
When you’re looking to sell your commercial property on the Gold Coast, understand the priorities and the pressures when it comes to reaching the right people in the right way. Don’t just advertise your property and wait for the enquiries to come in. An excellent real estate agent will do a lot more for you than just that.
It is a fact that there are plenty of buyers for most Gold Coast properties throughout the year, but there are some choices that you have when it comes to reaching out to right people effectively and directly. Strategic marketing should apply. That is where your agent should know what to do.
Where can you start with this idea? It is not just a matter of placing a property on the internet for sale; there are many other strategic things that you can do as part of the process to maximise the enquiry and the inspection opportunity.
Let’s open on that point and give you some support. Here are some specific ideas to help you tap into the right buyers for your commercial or retail investment property.
Defined target marketing – There will always be at the time of sale, a perceived target market that should be matched to your property. Target marketing has to feature in your marketing efforts, and that requires both strategy and the appropriate marketing spend. There are many ways to approach the marketing process today, but there should be a right balance between online and offline marketing; reach out to your buyers comprehensively at the time of sale.
Local area marketing – There is also great value in local area marketing when it comes to reaching out to new people. That can be done effectively and directly. So, the idea here is that you can specifically target market your property into the location and across the target audience. Define that audience before you take the property to sale, and ensure that your agent has a clear idea of how they are going to reach into that target audience individually as part of your promotional campaign. There are different channels of media and advertising to be undertaken.
Selecting the best time of year to sell – There are different times of the year where a property sale and promotion will be more effective. A review of history in your town or city will show the trends when it comes to the best times of year to reach out to others in selling your property. Most promotional campaigns extend for approximately eight weeks. As part of that, the target market must be engaged, and inspections encouraged. Ensure that the agent that you are working with has a clear understanding of when the property campaign should be started and how that campaign will be staged over time.
Best methods of sale – There will be selected and proven methods of disposal that could be more effective than others when it comes to getting a positive result in selling your property in a timely way. So, the message here is that your property promotion and the campaign to sell your property can be carefully structured for the best results from a method of sale that is to be commenced in a timely way.
Balancing your marketing mix – Traditional methods of marketing still apply today; however, the online portals and the search engines have a big impact in attracting people to your property. The attraction is a critical issue in promoting your property most effectively throughout the campaign. What can you do with that? So, your property promotions should be balanced in marketing both traditionally and online when it comes to reaching the target audience. The question to answer here will be how can you reach the target audience and where will they be looking for a property such as yours? The agent that you choose in your sale promotion should also have a clear understanding and recommendations to make around that question.
Existing database of old leads and qualified prospects – The larger real estate agencies have a list of qualified buyers from previous campaigns. At the start of any sale marketing campaign for commercial or retail property, the qualified leads from other campaigns can be reviewed and updated regards your property, in case they are still active and potentially interested in your property sale.
So, these are some of the things to think about in taking a commercial or retail property to the market for sale.
If you need help in selling a commercial property on the Gold Coast or in Brisbane, contact John Highman on 0417221108
Commercial and retail property on the Gold Coast is now reaching a new level of attractiveness from an investment perspective. Owning, upgrading, or expanding property portfolios over the coming 12 months is a good idea where opportunities can be found or exist. When you compare the commercial property market to other forms of investment in today’s terms (2020), the positives are easily seen.
What’s happening locally? The Gold Coast is
now a large and diverse property market.
Increasing population growth is a further leverage point for the
property market and those that like to participate in it.
Why is this? The existing growth of the
community and population on the Gold Coast has ignited fresh enquiry for
quality assets. Here are the known facts
that impact and enhance property on the Gold Coast:
Beenleigh is now becoming a ‘hub’ of activity midway between Brisbane and the Gold Coast. It is also a key part of the integration into the rail network through the corridor. This marks the start of the greater South East Queensland community growth and expansion into the northern Gold Coast. Suburbs south from that point include Yatala, Ormeau, and Coomera, all of which are growing with infrastructure, industry, and community zones.
Northern Gold Coast suburbs such as Coomera, Ormeau, Arundel and all those in between are growing comprehensively with new residential developments and infrastructure projects.
Shopping Centres and business precincts are taking shape and or exist in all the new suburbs to the north of the Gold Coast.
The M1 Freeway carries hundreds of thousands of cars daily to and from the Gold Coast region; it will only get busier. The Springwood freeway interchange is now taking shape and will soon direct more people through the region and integrate well with fast transport networks such as buses.
Growth and Change
So the south side of Brisbane is showing
considerable growth and change; it is the ‘gateway’ to the Gold Coast. If you are an investor in the region or would
like to be, then think about these ideas in your property decisions and focus:
Quality Properties – choose your next investments based on quality in either location or improvements or both. A good quality property can be defined by a number of categories.
Capital Works and Improvements – some properties will be in need of maintenance of a minor or major nature. You can review those facts in a due diligence period prior to settlement or completion. The question you must ask yourself is whether you have the budget for the maintenance activities that are required in the property.
Upside or Opportunities – some investment properties have ‘untapped’ advantages that can boost occupancy, income, or value over time. A quantity surveyor and or valuer can give you an idea of those facts before you purchase an investment property.
Top Locations – some suburbs are already locations of priority and business activity in the region. Some suburbs to look at initially would be Southport, Robina, Helensvale, Ashmore, Surfers Paradise, Broadbeach, and Tweed Heads.
Property Spend – how much are you prepared to spend on your next property purchase? Look at the loan value ratio offered by your preferred lenders and then relate that to your price range.
Stability of Income – it is always good to have a stable income from a tenant mix with low or no vacancies. The property can be assessed for those things. Purchase your property with a preference for occupancy, yields, and returns over time.
Documentation – every investment property will have a selection and variety of lease documentation reflecting the tenants in occupancy. Have your solicitor review the leases and the terms and conditions of each. Look for risk factors in leases or ‘weak’ documentation where critical dates may have been overlooked or could be too close in time for effective implementation. A solicitor can review those documents comprehensively before you settle on a new property purchase.
So, all of these things can take you forward in property investment and your decisions with your property portfolio.
Gather your facts and information before you finalize the next property purchase on the Gold Coast. Of course, there will be other things as well that you can add to the list based on your property types and or improvements.
Commercial and Retail Property on the Gold
Coast offers plenty of opportunity for investors now and over the coming
years. Look at the facts about the
region. There is the population growth underpinning the market, and the greater
variety of property available. So, what
choices will you make when it comes to property investment?
Where will you start your property investment
choices? Do you prefer:
From those questions, you can consider the
precincts of the northern M1 corridor, the central Gold Coast, or the southern
regions around the border and Tweed Heads.
Invest in the properties that you understand and can afford. It is interesting to note that on the scale
of ‘complexity’, retail property and shopping centres can be the more
As part of that fact, the retail shopping industry is under a shift with the pressures of the internet and the way in which customers purchase goods today. Shopping centres will not disappear, but they are changing.
Retail Property Changes Today
Consider these facts as part of retail shopping centre ownership and investment activity:
Department stores are less
important as anchor tenants and are a declining tenant type
Customers are looking for
entertainment and or convenience as they shop
Fashion tenants are best located
and are more suitable in larger regional shopping centres
Some tenant types are still active
occupants but are reducing in size (ie newsagents)
So what can you do with all of this? Consider upgrading your assets from time to time and or diversifying your asset classes.
Diversity generally brings with it more stability when some property types are more or less desirable to invest in, or when oversupply impacts occupancy and income.
Contact John Highman on 0417221108 for help with your next Gold Coast Sale or Leasing decision.
A sales plan for a commercial or retail investment property. What does it look like and should it be ‘special’ when you want to sell your commercial or retail property? There is a strategy here to think about. You want a good price and a timely result when you sell your property. What can you do in selling your property to get the best outcomes?
The simple answer is that most investment properties are special in some way or form. That says every part of the property description that you use in the marketing program should be optimised for the facts of the property as they are. There is also a target market to think about in creating the marketing campaign. There are also location issues to bring into the property marketing ideas and decisions.
When you look around your town or city you will see plenty of other properties for sale, so there is a lot of importance to the process of marketing and connecting with the right people.
The sales plan for commercial property should feature:
A selection of media to cover the target market
A priority spend on the elements of the media that are likely to be more successful than other channels
A staged campaign of promotion over a period of time
A definite target market of buyers that you can connect to
A skilled and successful agent in your location that already has a database of leads in the property type
So these are important and yet simple things that many agents overlook when marketing a property. Selling your property is not an ‘experiment’, so choose the agent that really knows how to do things and can prove it to you.
When it comes to selling a property today as a vendor, it is critical to understand the target market that should be attracted to the property and just how the agent will tap into that target market. So there are some questions that you can ask here.
Don’t just assume that your property will be ‘marketed’. Ensure that your property will be taken to the potential buyers in a strategic way. Who will be approached and why? What are the selling points of the property that should feature in the property advertising? What media channels should be used in the marketing campaign?
Shorten Time on Market
When these things are identified it is easier to make the
marketing campaign work for the property owner and ultimately the targets of
the price and time on market. It is also
easier to predict price ranges that could apply to the sale. Market knowledge here is the key and a good
local agent will understand all the variables.
Quality Marketing Campaigns
Marketing campaigns for selling property involve money and a mixture of the following:
Newspaper advertising (yes it still has an impact)
Email marketing (major impact as will be the database of buyers that an agent may have)
Direct calling qualified people from the agent’s database (high value)
Internet listing on key websites (everyone goes there to look for a property)
A signboard on the property (get a good quality sign on your property – something that stands out)
Flyers and Brochures – some will be through mail drop, and others will be through email blasts to a database list
Information Memorandum – this will be the full and comprehensive detail about the property and the offering for sale
Every dollar spent on marketing should be well considered to
the targets that are determined. Don’t spend
money on marketing without fully appreciating the plan to reach people and in
what way that will be done.
Its a Fine Balance of Property Marketing
Today we find that the marketing of every property is a fine balance of all the above items based on the target market that you are trying to attract. When listing a property for sale, ask the agent to define the target market and then explain how the marketing campaign will attract the buyers.
The best agents know the answers. If you need help in planning the sale of your property in Brisbane or Greater Queensland, give John Highman a call on 0417221108
When you own commercial or retail property in Queensland,
the income you get from your tenants is critical to the result you want as an
investor. For that reason, every lease
and its income profile should be optimised to the market and what is possible
given local vacancy trends, supply and demand, and property enquiry. Tenant selection will also be part of that.
Every tenant should be chosen with due regard to income growth and stability. Are they a clear match for your property? It is the case that some tenants are better than others. Grow your tenant mix in your property through selectivity over time.
Brisbane is part of the eastern seaboard of Australia and is a key point of entry for goods and containers. That is unlikely to change given the proximity of Brisbane to Asia and the Pacific. The real estate in Brisbane is cheaper than Sydney or Melbourne, and on that basis freight businesses and logistics firms can build a base of operations more economically than that in the other capital cities further south.
Where Do You Start Investing?
So what can you do if you are to be investing in Brisbane property? To help your income grow, it is wise to speak to your solicitor and your leasing or managing agent about a lease and rent review strategy that can work for the property and the tenants over the coming years. A good property investment is something that is shaped over time.
Don’t accept some ‘cheap generic lease’ as part of your
property lease strategy. Create a lease
with the help of your solicitor that can build your real estate investment
A solicitor prepared lease offers alternatives in income
generation from things such as:
Rent review timing
Type of rent
Base rent at lease commencement
Method of rent review
Recovery of outgoings during the lease
Option for further lease terms
Renovation strategies for tenant compliance
Make good terms and conditions at the end of lease
These alternatives when considered and placed into a property investment allow the property owner to go to the next level. Using the advice of your property solicitor and the comments of an experienced real estate agent will help the property planning process. A good property income and performance does not happen as a result of luck; it is a planned event.
Need help with investment property in Brisbane? You can contact John Highman direct on 0417221108.