Podcast
Questions and Answers
Match the following roles with their primary responsibilities in property leasing:
Match the following roles with their primary responsibilities in property leasing:
Leasing Agents = Review management and marketing plans Property Manager = Evaluate prospect tenants Marketing Director = Create leasing packages Brokerage Agents = Find potential tenants
Match the components of a leasing package with their descriptions:
Match the components of a leasing package with their descriptions:
Layout Drawing = Shows the location of tenants Brochure = Contains pictures of the property Regional Map = Displays transportation routes Demographic Profile = Details market and customer base
Match the tenant evaluation criteria with their descriptions:
Match the tenant evaluation criteria with their descriptions:
Sales History = Healthy trend in past sales Inventory = Adequate stock for operations Rent-to-Sales Ratio = Minimum rent divided by projected sales Profitability Impact = Expected contribution to center's profit
Match the types of rent with their definitions:
Match the types of rent with their definitions:
Match the marketing methods with their descriptions:
Match the marketing methods with their descriptions:
Match the following terms with their definitions:
Match the following terms with their definitions:
Match the following concepts with their descriptions:
Match the following concepts with their descriptions:
Match the following terms with their economic implications:
Match the following terms with their economic implications:
Match the following factors with their impact on shopping centers:
Match the following factors with their impact on shopping centers:
Match the following terms with their related concepts:
Match the following terms with their related concepts:
Flashcards
Leasing package
Leasing package
A document containing information about a property, including pictures, layout drawings, market demographics, and marketing plans, used to attract potential tenants.
Rent-to-sales ratio
Rent-to-sales ratio
A key metric for evaluating potential tenants, calculated by dividing the minimum rent by the projected sales per square foot.
Recapture clause
Recapture clause
A clause in a retail lease that allows the landlord to reclaim a portion of the tenant's sales revenue if it exceeds a certain threshold.
Minimum rent
Minimum rent
Signup and view all the flashcards
Percentage rent
Percentage rent
Signup and view all the flashcards
Percentage lease
Percentage lease
Signup and view all the flashcards
Breakpoint
Breakpoint
Signup and view all the flashcards
Gross Leasable Area (GLA)
Gross Leasable Area (GLA)
Signup and view all the flashcards
Anchor tenant
Anchor tenant
Signup and view all the flashcards
Study Notes
Learning Objectives
- Students will be able to compare different types of retail shopping centers
- Identify different types of retail tenants
- Discuss the importance of tenant mix in management planning
- List the different roles of each member of a leasing team
- Explain how to evaluate prospective retail tenants using the rent-to-sales ratio
- Discuss common retail lease provisions
- Explain percentage rent and breakpoints
- Contrast the leasable area formula with the leased space formula for determining pass-through charges
- Discuss the importance of the sales analysis report
Suggested Lesson Plan
- Students complete Exercise 12.1 to review the previous chapter on managing office property
- Overview of Chapter 12, "Managing Retail Property," which reviews the learning objectives for the chapter.
Chapter 12 Outline: Managing Retail Property
- Types of Retail Property and Tenants
- Gross Leasable Area (GLA): a measure of square footage, including all tenant spaces, but not common areas
- Anchor Tenant: a large retail tenant expected to attract most customers.
- Shopping center categories: strip mall, neighborhood, community, regional, superregional
- Strip mall: small, usually along a major thoroughfare, few tenants, small to medium anchor tenant, up to 30,000 sq ft GLA, smaller market area
- Neighborhood: 30,000-125,000 sq ft GLA, typically a supermarket or drugstore as anchor
- Community: 125,000-400,000 sq ft GLA, 15-40 tenants (often a supermarket, drugstore, department store), serve a 5-mile radius
- Regional: 400,000-800,000 sq ft GLA, 80+ tenants, serve a 5-15 mile radius, including large movie theatres & large department stores as anchors.
- Superregional: more than 800,000 sq ft, more than 3 anchor tenants.
- Outlet & discount: no anchor tenants, customers from a wider area
- Power centers: "category killers" cluster together in one center
- Lifestyle: caters to affluent shoppers.
- Retail tenants (types): Small shops, specialty stores, restaurants (outparcels), service providers (banks, etc.).
Management Planning for Retail Property
- Regional Analysis: Transportation, local industries, tourism, climate
- Neighborhood Analysis: Local transportation, neighborhood economic conditions
- Property Analysis: Physical attributes, marketing, leasing, management quality, financial condition
- Market Analysis: Customer base, competition, comparable properties, current trends.
Marketing Retail Space to Tenants
- Leasing Team: agents, brokers, marketing director, property manager, owner
- Finding Tenants: tenant profiles, advertising. review, and marketing plans, leasing package.
Leasing Retail Space
- Tenant Mix: proportion of different types of retail tenants and their arrangement.
- Tenant Evaluation: sales history, financial stability, suitability. Rent-to-sales ratio.
- Lease Provisions:
- Minimum rent
- Percentage lease: percentage of gross sales above a certain point (breakpoint)
- Recapture clause: tenant fails to meet sales goal, landlord can terminate lease
- Late charges, pass-through charges.
- Leasing lease provisions: terms, hours, security deposits, and signage (within reason).
Operations and Reporting
- Operations: Security, maintenance, and marketing (to customers).
- Reports to owner: sales analysis report.
- Key performance indicators (KPIs) for Retail.
- Reports and analysis of specific data (e.g. rent-to-sales ratio) as appropriate.
Exercises
- Review exercise: Identifying concepts in office space.
- Identifying types of shopping centers.
- Evaluating retail tenants.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
