Tenancy Mix Performance

Purposeful mall-space allocation, balanced shop typologies and rental levels reveal the optimal tenancy mix.

There are many factors that contribute to the success of a shopping centre or mall. These include location, accessibility, and catchment size, but one of the most critical is an ideal tenant mix. This particular factor is critical for multiple reasons and is equally important to mall developers, retailers and consumers. Broadly, if one were to classify tenant mix, the term indicates the kinds of different retailers or service providers present in the mall as well as the amount of space and the location they are present in. The Tenancy Mix Performance represents the overal success measurement

Customer Experience Predixit

The selection of the right retailers or service providers is extremely critical in terms of marketing, as this defines the kind of consumers that will come into the mall. While most malls see a generous mix of catchment crowd and people who are from outside the catchment thronging to the malls, however, catchment consumers do constitute the majority. Therefore, if there is a mismatch between the needs of the catchment consumers and the kind of tenants present in the mall, success is difficult to achieve. Mismatch could occur in terms of buying capacity as well. If consumers feel that the mall doesn’t offer products or services at prices they can afford, they automatically will not come to the mall and even if they do, the number of sales will not be commensurate with the investments made by the mall and the retailers.

Hologram in warehouse

The best tenancy mix is the result of the analytic process where elements like mall space and space allocation, equilibrium of the different shop typologies and rental levels are considered and produce a business layout of the specific mall in the specific area.

Predixit offers means of applying a multitude of information types such as financial performance of the tenants, comparative analysis against the same shop in a different location and predictive analysis of scenarios. The latter is often used when leasing contracts end or are renegotiated.

From the financial perspective, an accurate tenant mix analysis is an essential element in the business operation of a shopping mall’s management, as it gives invaluable insight into its future financial performance, with an assessment of achievable rental levels as well as cash flow estimations. Therefore, this type of analytics serves as the key reference when the decision on a project’s financing is made.