With retailers potentially facing their worst year ever, it’s imperative that landlords offer some sort of assistance to keep the lights on, doors open and rent current. Now a South Florida shopping center operator is going a step further, offering help right from start.
Miami Beach-based Terranova Corp. has launched a new support program for local tenants that includes marketing expertise, promotional materials and grand openings. The idea is to give fledgling merchants a greater chance of success by stimulating consumer interest and recognition.
“Small business owners are so saddled with all the aspects of running a business that the task of creating market awareness frequently falls by the wayside,” says Mindy McIlroy, Terranova’s executive vice president. “We realized we can really help if we provide them resources to craft their unique brand and draw attention to it.”
McIlroy adds that offering free marketing tools to tenants, such as banners direct-mail cards, is far more beneficial than just giving them a few months of free rent: “We are investing in long-term value, rather than just providing a short-term fix.” One such test of the new program, the opening of Cocoa Couture at Suniland Shopping Center in Pinecrest, offered customers cupcakes and champagne at the grand opening.
Terranova owns or leases and manages more than $1 billion worth of retail space throughout South Florida. The commercial real estate advisory firm’s services also include property management, acquisitions/dispositions and development services.
This is all good, but as a tenant of a Terranova managed/leased center here in S. FL what they need to do better is leave the expertise of the tenants to run their own business, what we really need is rent concessions, that is what will help us. I do not want my landlord helping me with marketing efforts for which they do not understand.
Get real Terranova!
What are the long term effects of cupcakes and champagne?
Retail Real Estate owners and management companies are well poised to support retailers and partner in their success. This is especially true for local retailers who are “trying to do it all”. Every management company should be providing marketing support prior to signing a lease and continuing this joint effort throughout the lease. Some retailers will benefit more than others from this service so management companies providing marketing support to retailers should be flexible to support retailers based upon their needs.
Retailers should be investing 2-4% of their revenues in marketing. (Marketing is a broad term and includes Point-of-Sale, membership organizations, community relations, online and traditional advertising, public relations, events, sales promotions, etc.)
A collaborate effort between retailers and the management company to craft a successful marketing plan is the best approach. However, there must be a leader who can gather retailer needs and then develop and implement a plan. If a measurement system is put into place from the beginning then the plan can be adjusted each quarter according to real results.
This is a huge opportunity for retailers and management companies! Even the most savvy retailers should welcome management support and share successes to be implemented by struggling retailers.
There is a wealth of experience between retailers and developers and we should all be open to learning every day. We each need to take a look inward and make the best of every situation. Rent reduction is not always the answer.