Retail Tenants Team Up
Retail Tenants Team Up in Attempts to Win Concessions
Source: http://retailtrafficmag.com (By Elaine Misonzhnik)
"In an attempt to win concessions from shopping center owners and managers, retail tenants at some properties across the country are bolstering their hand and banding together in united fronts with shared demands.
The logic of the strategy is that by coming together, tenants bring greater power to the negotiating table. It also prevents one tenant from getting a worse deal than other retailers at a center. Lastly, retailers can employ joint tactics—such as withholding rents—if the concessions they want do not materialize."
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Bad news for the Landlord. The disadvantages of this is that each tenant's situation is different and it is hard to come up with a common strategy. I'm not really seeing this happening in my properties. Just tenants sharing information but some have always done that.
I have not had this happen at my properties. But have found that if you do give one tenant concessions, some of them do tend to share information amongst each other.
Not all gloom and doom, a number of retailers are putting their heads together to draw traffic to retail centers. All ya gotta do, is beat out the competition. Collectively the power of all and thinking out of the box will stimulate sales and foot traffic. Perfect Example, is a "Spring-Fling" with a Jazz or Celtic Theme, band, costumed dancers, wine tasting, vehicles on display, food, dancers, lots of sidewalk displays and 1 days sales, live radio remote...and lots of foot traffic.
- Lori Burger | Flag this comment for review