Location
Location plays a crucial role in the success of any development. There are many companies that conduct demographic studies on the viability of developments for a particular location and it is important that retail developers have their plans assessed before proceeding.
This research will provide them with insight as to whether or not their centre is a fit with residents in the surrounding area. Ultimately, they need to ensure that their development will inspire enough foot-traffic to succeed.
In line with location, investors must also determine the size of the shopping centre that is appropriate for both the area and market under consideration. While smaller community centres are geared for daily visits and pop-ins on the way home from work, large shopping centres create a destination attraction and cater for a wide variety of people and many purposes. It may be perfectly viable to have a small centre within close proximity of a large one, but it would not be advisable to have two centres that have been developed for the exact same purpose right on top of one another.
Equally important is how the design of a centre aligns to its function. Closed malls are intended for lengthy shopping visits, while open centres are designed so that consumers are able to see the available stores from the road and park their cars right outside in order to pop in and out quickly. Based on these considerations, it is vital that developments are designed correctly. It is also important to note that smaller, open centres are not able to sustain double-story design. Multiple level structuring should be left to the larger, closed malls boasting the required critical mass to support multi-level foot traffic.
Lastly, property investors need to focus on acquiring the right tenant mix. The combination of tenants within a centre not only requires the ability to draw a large number of people and to sustain one another, but it must also help to fulfil the purpose of the development. For instance, it would be useless to place an expensive jewellery store within a small, one-stop centre. Centres that support the convenience needs of shoppers should have tenants aimed at this need and therefore fashion, for example, should be placed in larger malls with a critical mass of fashion that will give the shopper sufficient variety, which will in turn act as a stronger destination.
It is vital for retail developers to consider these four important factors before launching a new centre, in conjunction with visibility and accessibility. Comprehensive research very often proves to be the difference between a thriving development and a failed initiative.
