Retail Leasing 101: Market Studies

The first step when tasked with leasing a shopping center is conducting an in-depth market study.

Physically drive to the surrounding shopping centers and take notes on who leases the center, and figure out the vacancy, age, ingress/egress, tenants going out of business, tenants coming to the center, anchors, tenant mix, parking, visibility, functional obsolescence, external obsolescence, and any additional notes that may affect the value of the center.

Contact the leasing agent or leasing company to get the rental rates, pass-through rates, total square feet, and available square feet of the center.

Don’t rely on LoopNet or CoStar. Although the information on those platforms can be helpful, it is NEVER 100% accurate. The best way to get this kind of information is by developing great relationships with your neighborhood leasing agents.

Invite these leasing agents out to coffee or breakfast once a quarter and share information with them. Believe it or not, retail real estate is not a zero-sum game. Cooperation is better for both parties.

Order the information in an Excel file. List the properties in the rows beginning with your subject properties at the top, then follow with the biggest competition in ascending order. In your notes section, compare the centers to your subject. For example, XXX center has strong parking, but weaker than subject.

Tidy up your market study with styling and send the information to all the neighborhood leasing agents who cooperated with you.

When you discuss rent with prospects, some of them will bring up the rent at other centers to negotiate with you. If you know your competitors in the market, you are equipped with the necessary tools to effectively negotiate from a position of power.

Retail Leasing 101: KNOW YOUR MARKET.

Click here to download a blank Market Study Worksheet

Share

Blog Comments

More Posts

Stop Asking “Is the Owner Here?”

When I canvass with agents, almost every single one walks into a store and asks the person at the register, “Is the owner here?” It feels natural, but it’s actually the worst question you can ask. Think about who’s on the other side of that question. If they are the owner, you just told them they don’t look like it. If they’re not, you just told them they’re not important enough to talk to. Either way, you’ve disrespected the person standing in front of you before you’ve said anything useful. Skip the gatekeeper question entirely. Walk in, greet whoever you meet, and get straight to your purpose. “Hey, I have a shopping center a few miles away. What are your expansion plans?” That one line respects their time, treats them like they matter, and opens a real conversation, whether they’re the owner, the manager, or the person working the register today who might own the place tomorrow. Rockstar Tip: Cut “Is the owner here?” from your canvassing script completely. Lead with your purpose instead, and you’ll walk out with a name and contact info far more often.

Read More

Don’t Be the First to Say No

Most of us are silently saying no to prospects before we’ve asked them a single question. “They won’t be interested.” “They’re too small.” “They can’t afford our rates.” These thoughts show up automatically, and we listen to them without even realizing it. I think this comes from how we’re raised. As kids we hear no constantly, and we’re taught to just accept it. So as adults, we do everything we can to avoid hearing it again. One way we do that is by saying no on someone’s behalf before we ever give them the chance to answer for themselves. The flip side is just as damaging. When we do hear no from a prospect, some of us swing the other way and refuse to accept it, pushing and pressuring until it feels like a hard sell. Neither reaction serves you. Both come from the same place, an old discomfort with the word no that has nothing to do with your business today. The fix is simple, even if it takes practice. Ask the question you’re avoiding. Let the prospect answer for themselves. If they say no, thank them and move on. If they say yes, you just found a deal

Read More

Ask What They Do Now

Early in my career, a man called about my vacant 6,000 square foot end cap in Lake Worth. He said he wanted to open a video store as a prototype before franchising it. I laughed, told him the space was built for a restaurant, and filed his info a year out. I even wrote “Video Store, Ha!” on the sheet. That man was Wayne Huizenga. One year later his video store had 40 locations. It became Blockbuster. I didn’t lose that deal because of the space. I lost it because I never asked one simple question. From now on, ask every prospect these two questions before you do anything else. What do you do now? What made you call on my center today? These two questions tell you in thirty seconds whether you’re talking to a time waster or your next anchor tenant. Don’t skip them just because a prospect sounds unusual or too small to matter. Rockstar Tip: Never assume you already know how a call is going to go. Ask, then listen.

Read More

Stop Answering For Your Prospects

My first day in commercial real estate, my boss left me alone in the office with a pile of onboarding papers and zero training. I didn’t know a rent roll from a hole in the ground. I just knew I was supposed to prospect. So I called the only company I could think of with more than one location, a print shop I’d passed on my drive in that morning. I asked if they were looking to expand. They said yes. We signed them for their new corporate headquarters, and I went from rookie to Leasing Agent within weeks. I got that deal because I asked the question and stayed quiet long enough to hear the answer. I didn’t decide for that prospect that they weren’t interested. Most agents lose deals before they ever pick up the phone. They see an established business and assume the owner is happy. They see a struggling business and assume it can’t afford to expand. They see a national brand and assume it already has a broker. Every time, they’ve said no for a prospect who never got asked. Your job is to ask, not predict. Every business on your route is a lead

Read More

Beth's Resources

Beth has established a reputation for “giving back” and creating a legacy of helping others. To support this mission, she offers a wealth of FREE resources for individuals in the retail leasing industry, whether you’re a newcomer or a seasoned professional. Her collection includes case studies from her nearly 40 years of experience, providing practical insights and guidance. With Beth’s resources, you’ll gain valuable tools to navigate the complexities of retail leasing and achieve your professional goals.

E-News

Subscribe to the Beth Azor e-news to stay up to date with commercial real estate trends, events, and expert advice.

We promise, no spam. Just great content.

E-News

Subscribe to the Beth Azor e-news to stay up to date with commercial real estate trends, events, and expert advice.

We promise, no spam. Just great content.