by: Mike Boehm, Orput Companies Property Management Director
Considering information from the National Retail Federation’s article on expendable and untouchable items costs, Internet service is 47% more “untouchable” as a personal budget cut than cable TV service, what does this mean if you operate a retail store? How are you reaching your core customer? If you are solely relying on print/radio/ and TV advertising you are in for a rough ride. The successful retail tenant is figuring out how to operate in a multi-channel environment.
How does this affect property managers/Landlords whose primary tenant base consists of one store owners? Every business needs to nail three items: the right price, the right service and the right product. Depending on the location and the target market the order of these three items may change but the message still needs to be delivered to the core customer. Property managers and Landlords need to do a good job during the screening of prospective tenants to ensure the tenant is prepared to succeed in a multi-channel shopping environment. The property manager/Landlord is likely using funds on tenant improvements in order to secure the tenant, it is only prudent for the property manager/Landlord to review the tenants business plan and how the tenant plans to market their business in order to make an informed leasing decision.
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