18. Shopping Centres

Question 1

What are 7 retail development challenges?

Answer 1

1. Long term planning strategy
2. Staged implementation likely
3. Deciding majors
4. Programmes revolve around trading cycles
5. Tenant coordination key business driver
6. Lots of stakeholders
7. Urban planning challenges

Question 2

What is market research?

Answer 2

Collecting information to establish the needs of a project from existing perceived market with future forecasts

Question 3

What does market research focus on?

Answer 3

Feasibility of the need/use rather than the development

Question 4

What 4 things can quantitative data be used for?

Answer 4

1. Market share modelling
2. Trade area analysis
3. Economic impact assessments
4. Retail performance and location reviews

Question 5

What 5 ways can behaviour traits be researched?

Answer 5

1. Focus groups
2. Surveys
3. Workshops
4. Open days
5. One on one interviews

Question 6

What are 5 techniques on market research for shopping centres?

Answer 6

1. Trade area definition
2. Growth forecast
3. Demographic profile
4. Focus group
5. Household expenditure survey

Question 7

What are 3 aspects of planning the centre?

Answer 7

1. Tenant mix to meet market
2. Logical grouping of competitors
3. Structured planning

Question 8

What is the tenanting establishment process?

Answer 8

1. Market research - determines area
2. Tenant mix - to match market
3. Area determined
4. Rentals determined

Question 9

How is the area of each tenancy determined?

Answer 9

Target market turnover / optimum trading performance turnover per sqm

Question 10

How is the full experience achieved for the shopping centre to be attractive to customers?

Answer 10

By having all market required tenancies

Question 11

How is the rental determined?

Answer 11

As a percentage of expected turnover based on the nature of the business

Question 12

What is a typical major rental and what proportion of retail area do they make up?

Answer 12

$200psm
66%

Question 13

How much rent does specialty retail typically pay?

Answer 13

$900psm - money making part

Question 14

How much rent do food court places typically pay?

Answer 14

$1,200psm but are smaller

Question 15

What are tenancy guidelines?

Answer 15

In the tenant lease document requiring tenants to participate in the tenancy co-ordination process for developing their fitouts

Question 16

What are 6 things the guidelines include?

Answer 16

1. Fitout visuals looking in
2. Interior theme integration
3. Signage
4. Steps in process for approval
5. Who pays for what
6. Housekeeping

Question 17

What does the tenancy guidelines and co-ordination process aim to achieve?

Answer 17

A harmonious centre interior reflecting objectives
All stores completed at opening

Question 18

What are 6 objectives for the tenancy co-ordinator

Answer 18

1. Successful tenant operation
2. Each tenant harmonises with and supports centre success
3. Promote tenancy fitout design
4. Ensure structured design development process
5. Ensure timely completion
6. Ensure properly designed and landlord costs managed

Question 19

What is a usual tenant lease deal?

Answer 19

Landlord provides shell with no finishes and switchboard but no power/lighting reticulation, but pays contribution to shopfront
Tenancy pays fitout with landlord approval
Landlord builds service elements at tenant cost

Question 20

What are the 3 stages in the tenancy coordination process?

Answer 20

1. Consultant and concept design review
2. Full concept drawing review
3. Construction drawing review by landlord, consultants and cost planner