Much has changed since the “old days “ of the 1990’s when it comes to securing a location in a Regional mall. Today the majority of properties are controlled by a REIT ( a real estate investment trust) and that in many ways led to the disappearance of independent tenancies or smaller regional retailers in the large regional centers.
Today it’s all about the sales per square foot driven by name Brands, many international. If your concept cannot meet or exceed the mall average then you’re probably not on the right track in trying to secure this type of location. The rent alone, for the top centers in Canada is in the $300.00 per square foot area including additional rent. If that doesn’t scare you and you believe these type of properties would be interested in your concept then you will need to invest in a proper business plan, renderings, and be willing to share your current sales and profitability. You will also need to provide a strong covenant or a large security deposit which may not be refundable. From that point you might be offered a temporary deal and location which can be taken away from you if the space is needed.
The best approach might be no approach at all. The smaller regional tenants or even independents that break through usually do so because they already have a proven track record. They started in smaller centres and worked their way up by building their sales and customer loyalty. These same customers are often the ones that contact the regional malls to tell them about your concept. Going to a street store in a strong area and building your reputation will also get you noticed. You want the malls to come to you .
Build your brand, be patient, offer something that makes you stand out, have great customer service and a strong web site as well. Get reference letters, ask your customers to email the regional malls about you.
Finally, you might be offered a location in a property owned by the same company that has that Regional mall you covet. Take this opportunity and run with it, build your brand, build your brand, build your brand – that is your mantra and might open up those doors for you.
Gerry Lazar
Top Cats Realty Inc.
