Open-air retail – Why Tenant experience is no longer enough

As the news headlines remind us, it’s been a difficult few years for the retail industry. However, we are starting to see the seeds of change. One area that is showing real signs of strength is open-air retail, also known as strip malls or neighborhood shopping centres. The Commercial Observer recently wrote an interesting piece on the positive investor and tenant appetite for the asset class. 

Martha Kelley, a managing director at Bain, told Commercial Observer that open-air retail showed strong momentum from an investor-owner perspective. There’s a flexibility there when it comes to the retailer mix, she said.

“When you look at the data for the last few years, you see very strong leasing velocity in open-air retail centers,” she said. “About 100 million square feet of leasing has been done. These centers are in some ways more experiential.”

The diverse retailer mix, and service-orientated approach to open-air is attractive to both investors and tenants. This positive trend is encouraging – and importantly has space for continued recovery and future growth. However, whilst curating the right retailer mix and improving performance is the key to success, it is easier said than done.

Building strong relationships with tenants allows property managers to better understand what is working, and what isn’t. Thinking of the retailers as a customer is relatively recent shift, and it pays off. Taking an interest in their business and their performance can be transformative. However, getting the entire community at a destination to work together as a balanced ecosystem, is what empowers that entire community to be truly  successful.

Create efficiency in remote property management

The most efficient way to do this is through centralizing the communication and operations within an asset and embracing remote management. For those with off-site operations this can cause challenges. The question many have been asking is: should they be using technology to support the management of their assets?

The simple answer should be yes. The digital transformation within the commercial real estate sector has been taking hold for a number of years now. However, it is more complicated than that.

Improving commercial asset performance

Technology becomes a must-have. This is because of its ability to de-silo the relevant teams and do so in a cost-effective way. In a world where budgets are sacred, technology can be a game changer when used properly. When communications sit in one single place and are digitalized, it becomes trackable, auditable, and actionable. It provides unparalleled levels of transparency.

Digitalizing what were previously manual processes helps to save time and reallocate resources to where they are needed most. It also allows property managers to be proactive instead of reactive and provides adaptability. Being on the front foot with tenant communication, facilities and compliance, and security creates a better experience for tenants and shoppers alike. As a result, tenants perform better, and overall asset performance improves. In today’s retailer landscape – isn’t this what we are all working towards?

If the recent success of open-air retail has shown us anything, it’s that tenants and service are incredibly important. This is just the start. Utilizing tech-led remote management can take these concepts and turn tenant experience into a connected community – taking early signs of success to improved NOI, and increased revenue.

See also

• Could outdated property communication tools be holding you back?

FAQ

What are the benefits of creating a connected community in open-air retail spaces?

Creating a connected community fosters collaboration between tenants, management, and visitors, enhancing engagement and loyalty. Kinexio streamlines this by centralizing communication and enabling real-time updates on events, promotions, and operational information. A connected community also supports shared success, boosts foot traffic, and enhances tenant satisfaction. Kinexio’s intuitive platform ensures seamless integration across stakeholders, creating a cohesive environment that benefits all participants in an open-air retail setting.

How can technology enhance remote management in open-air retail centers?

Technology streamlines remote management by enabling real-time communication, task delegation, and operational oversight. Kinexio provides tools like instant notifications, data-sharing capabilities, and analytics, allowing property managers to stay connected with tenants and staff, even from a distance. By improving efficiency and reducing response times, Kinexio ensures smooth day-to-day operations, quick resolutions for issues, and better tenant experiences in open-air retail centers. Its mobile-first approach empowers managers to stay productive anytime, anywhere.