Renovating a shopping center can increase value, improve visibility, and boost tenant sales – but if you’re not careful, it can also disrupt the very businesses that pay your rent.
When I started a major renovation on one of my centers, one of the first things I focused on was who would actually be running the job day-to-day. Not just the general contractor – but the superintendent on site every day. This person will interact with your tenants constantly, so customer service matters just as much as construction experience.
Remember: you’re renovating an operating business environment. Your tenants are open, serving customers, and trying to make money. The last thing they need is chaos.
Here are a few Rockstar strategies I use during renovations:
- Phase the construction so only part of the center is disrupted at a time.
- Replace tenant signage with banners if signs must come down during façade upgrades.
- Keep parking open by limiting construction equipment and contractor parking.
- Require subcontractors to park far from tenant storefronts.
- Clean the site daily so customers don’t feel like they’re visiting a construction zone.
Renovations are also a great opportunity to renegotiate lease terms. If you’re helping tenants upgrade signage or improving the property, you may be able to trade for things like removing outdated options or improving lease terms.
Rockstar Tip: A renovation should increase value for both you and your tenants. Plan every step around one goal: improve the property without hurting tenant business.