Managing a commercial center is all consuming and we can help in one of the most important areas, an area often not understood by property managers and commercial real estate. That area is marketing for tenant retention.
With over 25 years in real estate and geo-location marketing we have discovered a particular need for our type of marketing in commercial real estate and property management. By combining our marketing strategies and content along with our real estate knowledge we can raise your center’s profile to appeal to the tenants you seek and the tenants you wish to retain at a fraction of the cost.
Benefits to the property owner and manager:
• Establishing an online presence including geo-location and social awareness
• Management teaming with tenants to benefit the center as a whole
• Encourages positive communication between tenant and property manager
• Referrals between tenants from marketing as a community
• Vacancy rates decrease due success of tenants
• Commission to real estate brokers decrease due to less movement among tenants
• Desirability of center due to increase in awareness through online platforms
• Tenant retention due to online presence/local presence
• Online presence includes: social content, social engagement using social media channels, contests, events.
• Development of hyper-local directory website exclusive to center and tenants
Consider the comparative cost of a tenant retention program against the cost of a tenant search. Take the example of a strip center with a leased space of 1,500 square feet and an annual price per square foot of $45 per year. If the tenant leaves at the end of the prescribed term and the owner has neither retained that tenant nor found a replacement tenant, the lost rental income from the space amounts to $5,625 per month. Add to this the $12,150 (3 years at 6% commission) on average paid to a broker to fill the space and a tenant improvement allowance of 3 months or $16,875 of lost rental income. Not forgetting the ancillary advertising fees and common area maintenance fees that will either be lost or charged to the remaining tenants in the center. In this scenario, the daily cost of that vacancy to the owner is $3,825 per month, when averaged over the entire year. Losing a tenant is expensive.
The benefits and costs of the C.A.M. Leads program in this scenario is $150-$250 per month as opposed to a loss of $3,825 per month. The net being a savings of $3,575 per month.
Benefits to the tenant:
• Average savings in digital marketing cost of 60%
• Tenants have access to graphic design solutions
• Tenant receives digital marketing collateral
• Common goal marketing program
• Increase in customers through digital marketing
• Reduction in customer acquisition cost
• Develops an open dialogue with property manager
• Establishes location as the best location for their business
• Location marketing and enhancement
• Stability of center
• Leads due to centers and fellow tenants in marketing efforts
• Online exposure on social media sites, blogs, press releases and review sites
By combining the C.A.M. Leads program with your Management Company or property as a value proposition you will increase retention, increase exposure, and dramatically cut costs while increasing the value of the property. If you have questions or would like assistance, please do not hesitate to contact us.