Recent statistics yield good news for any commercial property owner: the average inventory age for retail space in Missouri is under a year, and trending in the right direction — down 4.5 percent for space for lease during the fourth quarter of 2015. And here’s more good news: even in the case of empty space, there are still ways to reap revenue from unused retail.
Promote From Within
Not only is your retail center capable of generating revenue through direct sales, it can also act as a marketing tool for itself. Vacant storefronts and highly visible blank walls become a giant billboard for potential advertisers and entrepreneurs who wish to capitalize on your shopping center’s existing traffic. Use these assets as valuable lease add-ons or promotional packages for area businesses.
Embrace The Empty
Consider ways in which the empty space can benefit your existing tenants. If a restaurant is constantly crowded, they may be interested in patio seating or a larger bar area for waiting patrons. Offer vacant storefronts to retailers as a forum for creative, dynamic visual displays that drive more shoppers to their stores. You’ll still reap the benefits, as successful stores will pay greater percentage rent.
Reevaluate Your Space
Take a long, hard look at spaces with chronic or long-term vacancy, and think about other ways to use them. Make the most of hard-to-lease spaces by backfilling them with service and destination concepts like a community entertainment venue, salon, medical office or gym. Tenants like these generate fresh traffic to your retail center and encourage longer visits, providing more opportunities for your leasees to capture sales. Though a nominal investment may be necessary, it often results in long-term interest and a greater percentage of occupied space.
The commercial real estate professionals at Intelica can work with you to develop a strong leasing strategy and marketing plans to make the most of your vacant space. Contact us today to learn more.