Upgrading a Shopping Center Requires Time, Patience and...
Tenant mix is critical to the long-term stability of a shopping center. Tenant's sales can be tied directly to the quality and the Use(s) of neighboring tenants ("Use" meaning the type of business, ie: pharmacy, medical, grocery, women’s clothing, etc.). Are the surrounding tenant's businesses complimentary with similar standards?
Upgrading a shopping center does not happen by accident. Its success is directly tied to the long-term integrity of its leasing program. Much like a personal relationship…the health of a shopping center never remains linear. It is always trending up or down over time. Maintaining quality tenants and a good tenant mix will allow a shopping center to continually remain on the upward trend. Leasing to a sub-par tenant simply for the benefit of short-term income is a slippery slope that ends in long-term losses.
Strong, successful tenants care about the quality of their neighbors. Their bottom lines, good and bad, are irrefutable barometers supporting this philosophy. Successful tenants beget more successful tenants which, collectively, create long-term asset stability and good rent payers.