How Retail Property Owners Can Boost Returns In 2018
2018 is expected to be a solid year for some retail property owners. How can investors ensure their properties are among the winners, and best performing assets in their portfolios?
With Bitcoin having just tumbled by 50%, ongoing worry about highly priced and overpriced stocks, and yet, Amazon on the hunt for more physical real estate, commercial property owners could be among those seeing some of the strongest portfolio performance in 2018. Of course, how great those returns are will depend a lot on how properties are managed and optimized this year. Here are some ways of ensuring better results this year.
Build It Out
One of the best models for retail property this year is mixed use developments. Via Markets Insider, President and Founder of ReDev Properties, Richard Crenian says “While covered malls are facing many challenges, customer foot traffic in neighbourhood plazas remains very high.” Capitalizing on this, and new emerging trends ReDev has announced plans to begin the redevelopment and expansion of construction at Calgary’s Jacksonport Retail center.
The more space that retail owners take advantage of on their properties, the more income it produces, the higher the property value, and the more flexibility and potential exit strategies available.
Smart retail property owners are incorporating more entertainment. As local hubs of community, gathering, social activity, and fun, these shopping centers are busier, better trafficked, and enjoy more sales and demand for floor space. This can range from including childrens’ play areas, to hosting special events, and selecting tenants who offer entertainment experiences.
Optimizing Clicks to Bricks
Shopping between the web and local shops is more fluid than ever. The better retailers and property managers do at winning in this area, the better properties will perform. This may be search engine optimization so stores and shopping plazas are better found on the web, as well as offering in-store pick up options for online shoppers, as well as collaborating with delivery services.
The above, along with the right PR strategy, expert management, smart tenant selection, and cultivating stronger connections with shoppers can make a world of a difference in net returns this year, and the value of assets over the next few years. Done well, the result can be better cash flow and yields, more exit options, and greater leaps in wealth, while enjoying the security of a tangible asset.