Leasing new, vacant or empty stores is always a major challenge. Apart from the location, design and supplies, business owners must take into account store permits, vacancies and labour. The leasing process may then become tiresome, long and even overwhelming. The pandemic can also make things harder, due to different terms and conditions in larger facilities such as shopping malls, for instance. Digitising this process could really save time, red tape and many headaches.
First, you should not just consider average times, but account for possible delays. A great way of optimising the leasing process is starting plans well before the leases are executed and accelerate the internal approval process by having all relevant documentation ready. If you deal with your retailer via a digital platform, make sure it includes all the documents they will need to simplify this process. Getting more efficient at this point can help retailers compensate for permitting delays that occur later.
Second, communication is key. Digital platforms foster open and direct communication between landlords and retailers. Having effective communication with your retailer saves a lot of trouble, since negotiations are faster, centralised, and all terms and conditions may be considered during the initial exchange. The pandemic has shown that both parties must partner to deal with the current context and develop new strategies.
Digital platforms foster open and direct communication between landlords and retailers.
Open communication also makes negotiation easier, since all considerations can be on the table. Landlords should be transparent about the facilities, the space they provide and potential issues that may arise, while retailers should anticipate possible delays, remove all doubts and keep landlords updated about the process. Timelines and schedules are essential, yet they should be flexible considering the current situation.
Last but not least, consider all different options before embarking on this adventure. Mainly, take into account the different motivations your retailer may have to open a new store and offer them solutions accordingly. Be it to wow their audience or try a new location, a pop-up store is a great opportunity for their business; while a retailer who wants to open up as soon as possible would need to take a store that is already in place, to optimise construction times and backend permitting or approvals. However, those potential clients who are betting on having a major place and establishing a long term lease will prefer a store build-out. Presenting all different options and vacancies on a digital platform helps your retailer anticipate the specific dynamics of each location and adapt to possible outcomes.
Presenting all different options and vacancies on a digital platform helps your retailer anticipate the specific dynamics of each location.
Digital platforms have definitely come to stay as they make all processes easier and faster. Why should we not introduce these innovations into the commercial real estate industry and the specialty leasing sector? All management, invoicing, contracts and advertising areas could be controlled from one panel. In fact, you could get insights about each aspect of the leasing process. The more you know about the patterns of your retailers workflow, the easier you will be able to succeed and satisfy their needs.
