Marketing of Retail Properties Flashcards
What are retail properties?
- Remises used for the carrying of any trade or business where the primary purpose is the sale of goods by retail
Types of retail properties
- Shopping centres/malls
- HDB Property (eg in HDB town centre, neighbourhood centres)
- Shop houses
- SMRT accommodation
Players in Retail Property Market
- Buyers and Sellers
- Tenants
Players in the retail property market
- Developers, Investors (especially REITs)
- Retailers
Purpose of Developers and Investors in Retail Property Market
- Generate regular income stream through rental revenue
Purpose of retailers in retail property market
- owner-occupy to conduct retailing business
Tenants in retail properties
- most retailers don’t purchase retail properties.
Why do retailers usually rent properties instead of buying them?
- Lower capital expenditure
- Allow retailer to remain foot-loose
How long are retail properties leased for?
- Three years
- Can renew further 3 years
Why companies and businesses could be looking for properties to rent
- New set up
- Expansion
- Downsizing
- Relocation
- Merger and acquisitions
General factors affecting pricing of retail properties
- Location
- Accessibility
- Condition
- Size and shape and frontage
- Height and view
- Facilities
- Tenure
- Market trend
- Others
What kind of location are there in retail properties?
- Geographic location
- Location within a location
What do they mean by Geographic
- is the mall located in a primary shopping belt like orchard?
- or a secondary shopping belt like Suntec City?
- is it a CBD shopping area? or a suburban mall?
What does location within a location mean in retail properties?
- The location of a shop unit within a shopping complex has an impact on its rental and price
What are the two most common and inter-related determinants of retail pricing?
- Visibility
- Traffic flow
What does visibility of a shop unit mean?
how easily shoppers can see the shop
What does traffic flow of a shop unit mean?
intensity of shoppers passing through the specific shop
What locations have a high traffic flow (and thus higher rental)
- Ground floor
- Facing main thoroughfare or the main concourse directly in front of the escalator
- facing main entrance, main roads etc
Special considerations in marketing of retail properties
- anchor tenant
- trade and tenant mix
- size of development
- population catchment area
- vertical transportation
- parking facilities
- loading and unloading facilities
- public transportation
- toilets and other facilities
What does an anchor tenant mean?
- crowd pullers
- not only attract shoppers but also tenants
- usually given concessionary rentals cuz of the positive benefits they bring to the centres as a whole
- usually in prime locations within the shopping complex
Trade / Merchandise Mix
- range of retail trades operating in the shopping centre
- key is to have a balance of trades that both complement and reinforce each other, providing an interesting variety to attract shoppers
- without creating too much damaging competition for the shops present
how do you create a well-balanced trade mix?
- one or two anchor tenants
- maybe some mini-tenants but dont have also can
What is tenant mix in a mall?
securing of the right retail names/brands for the various trades.
Criteria in selecting the right tenants
- fit into trade mix and tenant mix
- complement mall theme, concept, and image
- good reputation in market & draw for shoppers
- financial stability, affordability of rental
- new concept/flagship store
Population Catchment Area in a mall/retail property?
- depend heavily on shopper volumes that are, in turn, drawn from nearby population centres.
Advertising and promotion in retail properties
- through newspapers, magazines, comics
- sales promotions
- public relations
- personal selling: service counters, mall ambassadors
- events: magic shows, performances, grand openings
