Ultimate Alpha: Shopping Centres as a Financial Opportunity

Shopping centres as a financial opportunity from inception through to investment, asset enhancement and performance.

Shopping Centres as a financial opportunity

Why are shopping centres unique?

To answer this question we will need to know the shopping centres economics and the demand for retail space from an economic, global and regional perspective.

  • Shopping centre location: How to locate the source of data and use innovative analysis techniques to supplement entrepreneurial instinct and identify needs at a national level
  • Design, construction, repairs and refurbishment: Once the shopping centre is located the specifics of store layout, construction cost, planning and upkeep is needed in order to maintain its popularity with shoppers and retailers.
  • Retailers’ product mix and lease strategies: Shopping centres need to be built in very precise locations and their design should be flexible enough to meet new product mixes in a dramatically changing retail environment.

 

How do we run a successful shopping centre?

  • Operational management and expenditure: An operation management strategy is key to the success of the shopping centre. Management structure decision, outsourcing and in-house models all have cost and quality implications.
  • Occupiers, leases and optimisation modelling: Attracting the right occupiers helps define the shopping centre and the customer experience.  A full cash flow model illustrates the impact of investment of optimizing leasing strategies, operational cost, product mix and retail performance.

 

How do we enhance shopping centre performance?

  • Performance metrics, reducing spend and increasing efficiency: . The importance of keeping tabs on the metrics to avoid detrimental knock-on effects as well as the importance and value of these metrics form the perspective of the shopper and retailers.
  • Commercialisation and New technology: Omni-channel is the buzzword on everyone’s lips and driven entirely in response to new technology in online shopping and social media. Owners of shopping centres need to be one step ahead, embrace new technology and redefine what it means to the shopper to visit retail space.
  • Sustainability across the shopping centre lifecycle: Sustainability presents many opportunities and many risks to shopping centre location, development and operation. Regulation, urban management functions and tenant corporate social responsibility statements will present significant asset management risks but also be responsible for large gains for those on the right side of this substantially changing landscape.

Bayfield Training Shopping Centre Investment course is taking place from 24th  to 26th of February in London. This course shows how the latest trends in shopping centre theory are applied to asset management and investment. Everything mentioned above will be covered in depth.


author: Sonia Martin-Gutierrez

January 19th, 2016|