decembernewsletter2024

Does Your Shopping Center Have a Reputation?

In this week’s Mark Minute, I share an inspiring idea from a property owner who leverages charity events to market his office building—without spending a dime on traditional advertising.

This approach is genius for building awareness and keeping his property top of mind for potential tenants. I also explore how these strategies apply to shopping centers. Does your shopping center have a reputation? From creating a simple website to establishing a social media presence, and even hosting events, there are steps you can take to ensure your property is always in the spotlight—even when fully leased.

The Biggest Fear Owners Have

Are you leaving money on the table with below-market rents? In this Mark Minute, I break down why long-term tenants paying outdated rental rates could be holding your property back—and how to address it effectively. Discover:

✔️ How to spot below-market rents in your portfolio.

✔️ Strategies to approach rent increase conversations with confidence.

✔️ Why aligning rents to market rates is essential for your property’s success.

✔️ How to handle tenants who may struggle to pay higher rates.

Do You Have a Leasing Plan?

Many owners mistakenly believe a leasing plan is just about putting up a sign and waiting for tenants with good credit to call. However, a strategic leasing plan is about much more:

1. Curating the Right Tenant Mix: Finding tenants that complement each other, like adding a cafe next to tenants who frequently host client meetings, to boost engagement and revenue.

2. Leveraging Data: Use Google search trends to identify what local consumers are looking for and target those businesses.

3. Increase Traffic and Value: By catering to the specific needs and demands of your community, you can significantly increase traffic, tenant satisfaction, and the overall value of your shopping center.

Don’t Discount Rent – Do This Instead

I love door knocking and chatting with tenants. It’s fascinating to dive into what’s on their mind, what their competitors are doing, and most importantly, how their real estate is helping their business succeed.

My favorite ask: “tell me the story of why you opened this location.” It’s a great way to understand what drives a business’s leasing decisions.

So, what do tenants care about?

Foot traffic (by far the most important): More people passing by means more potential customers, so tenants want locations that naturally attract a crowd.
Income levels in the area: Tenants target areas with a higher average income because customers will have more to spend on their products or services
Population density: Businesses need a large enough customer base to thrive, so higher density areas offer a better chance for success.
Signage opportunities: Visible, well-placed signs are essential for drawing attention and making sure people know a business is there.
Whether the space was turnkey: If the space is move-in ready, it saves tenants time and money on renovations, allowing them to start operating immediately.
Co-tenants: Businesses often prefer to be near complementary shops or services to share customers and boost traffic to each other’s stores.
Reputation of the management company: Tenants value landlords who handle repairs quickly and keep the property running smoothly.
Quality of the center: A clean, well-maintained shopping center with a good appearance creates a positive impression on customers, which in turn boosts business.
Amenities: Extra conveniences like seating, WiFi, or easy pickup spots can enhance the customer experience and attract more foot traffic.
Ease of the leasing process: Tenants want a hassle-free leasing experience where the landlord is easy to work with, doesn’t delay, and is upfront about lease terms.

Notice something interesting? No one mentioned “cheap rent” as a priority. Why? Because tenants understand that real estate is crucial to their revenue and profitability. A well-run shopping center— not low rent — is what makes or breaks a location.

So what do you do as a landlord? Focus on improving these 10 key factors. When you find tenants who are a perfect fit based on these needs, rent will be the last thing on their minds.

May your shopping centers stay filled with quality tenants.

Until Next Time,

Mark Kvetkovskiy

Commercial Real Estate Advisor

KVREA | Compass Commercial