Leasing Coach: Small Retail Center Owners Must Go on Offense

Food is one of five "F" word categories that are big with retail centers -- Food, furniture, fitness, fun and physicians.

South Florida-based real estate leasing coach Beth Azor delivered that tidbit for some laughs during her session at the International Council of Shopping Centers convention in Las Vegas called “Nine creative ways to lease your vacancies faster."

Shopping centers tended to shy away from restaurants in the past. But now they represent about half the mix of tenants. And fun is huge, Azor said particularly with places that offer competitive "socializing," such as bars and restaurants that host ax-throwing games.

To attract these tenants, Azor said small owners must go prospecting themselves. But, in evaluating, it may mean firing yourself as the leasing agent.

She did that on one of her own retail centers after spending a year trying to lease space there. After looking at it, “I was not the right player,” she said. “I had to have integrity for my partners, not my ego,” she said.

Azor hired a broker and a new lease came several months later.

She said there are two things that get her excited--give her goosebumps--when a potential tenant calls: they say they have multiple locations and they have money. Searching for well-funded tenant that has had success elsewhere can be a recipe for success, she said. Her are some other lessons she's learned:

Lesson 1

Owners need to canvas and target a market. “Canvassing is only for mom-and-pops,” Azor told the crowd. If you want a bike shop, go talk to bike shops. Seek out a business like the one you want to fill out the spaces.

Lesson 2

Create and take fliers to potential tenants. “Make it easy for the prospect,” Azor said.

Azor noted that if empty space still has the stalls and chairs for a hair salon, contact hair salons in a radius around the location. She worked with someone with such a scenario and they had a lease done in 30 days on space that had been empty for a while.

After her session, she was asked about what to include in terms of the rental rate. She said not to say “asking rent." It’s just the rent. And if a potential tenant calls and asks for the rental rate, don’t give it up right away and instead ask questions to learn about the needs and the business.

Lesson 3

Go to the top tier mall in your area and talk to the business who have leased kiosks. “They want to be in line” at a shopping center, Azor said. Then, at the lesser malls, talk to tenants there who moved into space thinking they got a good deal and are regretting the decision, she said. They are prime for moving.

Lesson 4

Azor had the room raise hands for who gets Valupak, the coupon mailer from local businesses. Then she asked who throws them away and there were still lots of hands up. “These are leads coming to your house,” she said. So don’t throw them away. “They are the goose bumps people.”

She uses “Best of …” on Yelp or any place that lists businesses that way. While lots of people think print media is dead, she’s an advocate because it shows businesses spending money. That usually means the business has money and can be a good tenant.

Lesson 5

Getting involved in the local chamber of commerce can lead to new tenants. Azor said it’s more important in small cities than big cities. You stand a strong chance of getting a tenant after about five or six months of going to the monthly morning breakfast. The key is making yourself the local real estate expert.

Lesson 6

Prospect on Facebook. Azor said Facebook is probably the best prospecting source she’s seen in her 33 years of business. You go to a prospect’s business page, send a quick message and odds are better than average that someone gets back to you. The direct communication allows you to avoid a potential gatekeeper standing between you and the business.

Azor said it’s simply supply and demand. The business owner is looking at 300 emails or one Facebook message. One is easier to answer and the reply often comes late at night, she said and members in the crowd confirmed.

Lesson 7

Use LinkedIn as a way to reach national tenants. Early in the session, she had everyone pull out their mobile phones and pull up LinkedIn. She told everyone to tap the people icon on the bottom, which allows you to find people nearby.

“It’s going to blow your mind,” she said. And in a flurry, people in the crowd were connecting.

Lesson 8

Incorporate pop-up or temporary retail. “I love pop-ups,” she said. “I was doing them before they were cool.”

She had a space to fill and put a piano teacher into the space. The teacher’s business grew to the point that Azor helped her find a new location elsewhere. She did a similar deal with an apparel company, which is still a tenant.

Lesson 9

Meet with other property owners and find what deals didn’t happen. Find out about those and perhaps that provide an opportunity to resurrect them, Azor said.