Commercial Guidebook | Real Estate Investor Magazine Commercial Handbook 2013 | Page 11

• etermining the typical population profile of D the subject shopping centre’s catchment area: this exciting centre which encourages repeated sales but also establishes a sustainable centre which endures • etermining the typical expenditure profile and D pattern (the spending capacity) of the subject shopping centre’s catchment area and estimating the subject shopping centre’s probable market share. This refers to the most probable number of shoppers at each income level that shall frequent the subject shopping centre during the various days of the week and will enable landlords to estimate the typical expenditure across each retail category. (2) Meeting the needs of a diverse shopper spectrum • etermining the optimal retail sector mix to D match the typical expenditure profile which the subject shopping centre shall sustain during the each day of week. So, depending on the optimal catchment area’s population numbers and profile, the size of the required food supermarkets, clothing and shoe stores, furniture stores, banks and department stores can be determined by projecting the anticipated trade density of each store. will include the typical income level, living standard measure profile and age profile of the subject shopping centre’s catchment area. • Matching the optimal retail sector mix to the various trading densities required by each retail tenant to formulate the optimal tenant composition of the subject shopping centre. • Design the optimal layout of the tenant mix so as to procure the optimal design, retail-sector content and tenant mix of the subject shopping centre. for decades: patrons come to accept that such centres meet all of their shopping needs and refrain from going elsewhere. The tenant mix that is ultimately selected and implemented will determine the sustainability of a centre by, ultimately, establishing a centre of mass appeal. A hi-tech model can be used to project the ideal tenant mix by formulating the split between the required anchors and the line shops. Thereafter, the necessary line shops (that is those smaller retailers without which modern society cannot do without) are inserted. These will include optometrists, cellphone shops, restaurants, coffee shops and fast food retailers, fabric and linen providers, computer service providers and business service providers. Once the optimal tenancy requirements have been empirically derived, a balance between national retailers and line shops can be formulated to provide shoppers with access to standard goods and brands as well as unique supplies which titillate a shopper’s interest in browsing and shopping for more than just basic requirements. In order to establish an exemplary centre, the inclusion of entertainment providers, health and beauty practitioners, hairdressers, medical practitioners, homeware suppliers and interior designers, security service providers, toys and hobby shops and travel service providers is preferable. Most retail landlords err by believing that a national tenant profile creates an income-stable centre and forget to encourage line shop tenancies. However, having a wide variety of line shops creates not only an antique sellers, audiovisual- equipment distributors, booking offices, book shops and stationery providers, confectionary and sweet shops, dry-cleaners, jewellers and fashion accessory outlets, f lorists, musical www.reimag.co.za And, to round off an exemplary centre, art and Commercial Handbook 2013 9