Bombarded with Retail Leasing Opportunities?
There is a better way- when speaking with clients it is common for them to say they have a number of retail leasing agents that are searching for new sites and are in regular contact. This in itself is not unusual, at some point you need a reliable agent to negotiate the lease, this is what you pay them for.
Where the process gets skewed is that often they are looking at tenancies that may not be in your best interest. By this I mean if you were able to give them as much useful informatiion as possible about what makes a site arractive for your brand, then presumably this will reduce the likelihood they will be presenting opportunities not ideal for the business. The agent gets paid for finding the tenancy, negotiating the best lease that would include various contributions from the landlord.There is nothing wrong with this part, however what I feel would be a better strategy would be for the business to give the agent a list of potential locations they should focus on.
What is the best way to go about implementing this strategy? Firstly, you need to better understand the key drivers that most impact sales performance. Every business is likely to know that demographics, foot traffic, road traffic, competition, generators all impact sales in some way. An example of a pie chart depicting the sales drivers with an equal weighting below.
How do you identify which of these key sales drivers has a greater impact on sales performance for your brand? Doing research & analysis from your existing network of stores to idenify the characteristics that make the better performing stores perform better is the logical first choice.
The insights from the analysis then feed into a strategic network plan that along with supply vs demand mapping will highlight the greatest areas of opportunity for growth.
One of the tools that we create is specifically designed for your property team for assessing potential new tenancy opportunities. The tool is a “PSE” (Preliminary Site Evalution) form created as a “first cut” filter scorecard to determine whether the site is worth pursuing. Imagine giving this form to your leasing agents and getting them to filter out the good from the bad sites so they are only coming to you with legitimate sities that meet a minimum criteria.