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Business Tourism Trends

Jun 04, 2018

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    Shopping Centre LeasingThe Planned Approach

    Phil McArthur, SCSM

    Senior Vice President, India

    Ivanhoe Cambridge India

    Past Trustee

    International Council of

    Shopping Centres

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    The importance of Leasing

    Leasing provides 100% of therevenues each and every year

    Shop rents Anchor Shop rents

    Specialty Leasing

    Karts, Kiosks, Sales Promoters

    Advertising Revenues Car Parking Revenue (sales

    high in Centre, parking lot full)

    Percentage Rent fromsuccessful shops.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    The Importance of Leasing

    Bank and Financial Partners willnot lend money unless they arecomfortable with the LeasingProgramme

    Global Financial Markets cannot afford to take risk.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    The Importance of Leasing

    Leasing will be responsible to

    deliver brands that are

    compatible with the

    development vision and with

    the trade areas lifestyle and

    socio-economic characteristics

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    The Importance of Leasing

    Leasing can create magic or amessdepends on theexperience and passion of theleasing professional andteam.

    The Owners leasing teammust manage the brokers.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Importance of Leasing

    The best leasing usually is

    done by the team that works for

    the Owner, as everyone has to

    live with the deals.

    Working with Brokers is also

    key, manage the broker like you

    manage your best teammember

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Selling the Vision

    The Development Teamsvision must be reflected in theLeasing plan and overalldevelopment direction

    Look and feel,

    Market segment,

    Target audience

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Know Your Product

    100% familiar with the lease,location size, depth, all physicalcharacteristics of the shoppingcentre and the locations within

    the Centre. Must know themarket and the competition nowand future.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Know what The People.want!

    Must be a passionate student of

    human behavior and pop

    culture trends.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    READ THE LEASE

    The Lease is the Rule Book ofthe game and the Legal

    agreement between the Mall

    Owner and the Retailers.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Team Approach

    Architect. the direction on

    how to best feature the brands

    for the consumer

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    The Team Approach

    The Owner can be Private funds,Family funds, Private or Public

    Funds and Institutional Investors

    and all Shareholders.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Team Approach

    The Developer and his team of

    professional assistants -

    Investment, Design,

    Construction, Leasing andOperations.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Team Approach

    Operations and MarketingTeam. they have a say asthey live with all leasingdealsThe Mall BusinessStarts when the building isopened and the handoff takesplace to Mall Management.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Great Malls are Entertaining!

    Designing, Leasing and

    Opening a Shopping Centre is

    like making a Movie

    The Owner of the Mall is theProducer

    Development Team make

    the movie with key people

    Directing the Movie.

    Cast is the Mix

    Actors are the Brands

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Retail Mix Planning(Merchandising Your Centre)

    Retail Plan is the layout of the

    MallLeasing and Architects

    need to closely coordinatefor

    zoning, design criteria, base-building provisions.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Retail Mix Planning(Merchandising your Centre)

    The Mix is really a recipe/formula

    that is constantly being revised

    during the Leasing Programme

    and after opening. it neverstays fixednew brands,

    expansion of existing brands,

    failures, releasing.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Retail Mix Planning(Merchandising your Centre)

    Mix ideasmust create a

    complete mix of categories.

    Depending on size and target

    of the Centre

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Its whats inside thatcounts.the shops!

    Neighbourhood

    CentreSupermarket,

    Pharmacy, Caf, Convenience

    shops

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Its all about the Shops

    Communityadd a Fashion

    anchor (usually promotional

    department storeValue for

    Money)

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Regional and Super RegionalMalls

    Regional and Super Regional.

    Wide variety of Fashion,Comparison, Convenience and

    Entertainment

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Lifestyle centres and Hybrids

    Lifestyle, Entertainment,

    Waterfront, Resort Retailall

    require unique mix solutions

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Target Mix Ideas - RegionalMalls

    ANCHORS (35-50%)

    Fashion Anchors-Department

    Stores

    Food Anchors-Supermarket or

    Hypermarket

    Category Dominantfurniture,toys, books, electronics etc.

    Entertainment. Cinema,

    Family Entertainment Centre

    Other Anchors. Big Box(IKEA, Home Depot)

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Fashion is the backbone of theRegional Mall mix

    FASION (25-40%)

    Ladies Wear

    Mens Wear

    Ladies & Mens Wear (unisex)

    Fashion Accessories

    Children Maternity

    Lingerie

    Shoes

    Hand Bags, Luggage andLeather

    Tradition Fashion

    Jewellery real and fashion

    Optical & Sunglasses

    Watches Gold & Silver

    Cosmetics 2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Everyday goods andservices HOME (5-10%)

    House warestableware,flatware, kitchen

    Electronics and Mobile Phone Art and Collectables

    Bedding and Linens

    Books, Cards, Games

    SERVICES (2-5%) Health, Beauty Banks and Money Exchange

    Pharmacy

    ServicesTravel Agent,

    Barber, Printing, Key Cutting,Dry Cleaner, Photo Finishing,Florist

    FOOD + BEVERAGE (5-15%)

    Restaurants

    Cafes

    Nightspots

    Food Court 2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    The Art & Science of ShoppingCentre Leasing

    Art is in the vision and your

    ability to create a place where

    people want to visit and shop.

    Science is the planning and

    execution of the mix and the

    most suitable brands in strategiclocations.

    2009 ICSC/MECSC John T. Riordan Global School for Professional Development

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    Multiple Levels andNeighbourhoods

    How to Mix levels? Key is to get Footfall on each level

    Parking feeding each level is perfect Position of vertical transport andbridges important

    Multi levels Level 1-2 Primarily Fashionconside