Question

Choose a local shopping center or strip mall in your area (provide the name and address), preferably one with vacancies. Imagine that you are the new owner of the mall. What steps would you take with your new property, e.g., marketing, capital improvements, lease terminations/renewals, tenant mix, etc?

Answer 1

Local shopping mall:

Name- XYZ
Address: ABC, PIN CODE: XXXXXX

For establishing a new property it is required to enhance the promotions in the market by overlapping the competitor’s constraints. The constraint leads to determine a new idea to construct a strategic approach to promote the business well in the market. The business requires establishing a new set of marketing channels; especially the social media is required to be utilized for formulating the business correctly. Different advertisement with banners, hoarding, live on TV and pamphlets are require being used to spread the news for the grand opening of the mall. The analysis of the customer's feedback is highly required to be acceptable which will help in making strong marketing approach.

The capital improvement is highly essential in the shopping mall for the permanent structural change with the aspect of the property and it will enhance the overall value of the property. It will value the real property of the owner to a prolong life’s period, for any replacement made in the property it gradually extends the useful life of an asset.

Lease terminations/renewals- Both the renewals and termination of the lease determines the sufficiency of the revenue in the shopping malls. If the revenue and sale remain at a high standard then the shopping mall owner will renew the contract after a certain interval of time. But, if the property owner of the shopping mall unable to pay the rent to the landlord then the contract shall be required to be terminated by paying all the dues left over. It requires checking the sufficiency of the budget before landing up to open the mall, and a customer research has to be organized for checking the feasibility of the market demand in the market.   

Tenant mix- A tenant mix at the shopping center is determined by the critical factor of marketing and financial success. To establish a good market position and increase the market share it is required to line-up the strong tenant is very crucial for the early development of the new shopping centers.