Franchising, retail, business
01/02/2017
It usually takes me 3 weeks after the holidays to venture back into the local mall, as this is how long it takes me to forget the massive lines I waited in to find parking in the days before Christmas. On January 18th I decided to risk it, I was going to head to the mall to buy my son a birthday present.
Pulling up at 11:00 a.m. I suddenly thought to myself, “what time does the mall open, as the parking lot sure is empty”. Knowing that I needed to purchase a gift that day I decided to park and wait for the mall to open, however much to my surprise the sign on the mall doors stated opening time as 10:00 a.m.
Not only was the parking lot empty, so was the mall. Two things were missing, very few shoppers and many less stores. I was astonished to see the mall almost one-third vacant, storefront after storefront advertised “space for rent”.
I recalled a discussion with a leasing agent that I had in early November when she advised me proudly that the mall was “100% leased”; I was now having trouble reconciling her statement with what I saw with my own eyes, the mall had considerable vacancies.
The answer to the mall riddle is obvious, national retailers are fleeing malls in record numbers, yet they continue to honor their lease obligations and pay rent through lease termination. In the minds of leasing agents, malls are fully leased as they are receiving rent for 100% of their leasable space.
Challenges for malls present great opportunities for clients of MKA Consulting, as we are able to procure space that is technically leased, yet available. A number of our franchise clients are taking space at lease rates previously unavailable, the key is identifying the right space at the best malls. Our consultants, through years of working with national mall operators, are available to help franchises nationwide take advantage of great rents in good locations. Please contact MKA Consulting for more information.
Fonte:https://www.linkedin.com/pulse/why-franchisees-getting-best-mall-locations-lowest-rents-krawitz?trk=hp-feed-article-title-like