Commercial real estate management companies. Features of shopping center management

The crisis has forced many owners and managers of retail real estate to remember that shopping centers are not just square meters for making money. From the point of view of doing business in a market, a shopping center is a product that needs marketing support, promotion in the market, and which consumers can appreciate or ignore. Therefore, it is time to think about meeting customer needs and improving the quality of services for them. In this article, we will look at the challenges that shopping center managers must pay special attention to in today's environment.

The clients of the shopping center, on the one hand, are its visitors, and on the other, the tenants, on whose successful activities the income of the owner of the retail property depends. Therefore, the tasks of the management structure of a shopping center are complex and multifaceted: it is necessary to analyze the commercial real estate market and its development trends, as well as monitor changes in retail trade, services and entertainment, take into account the development of formats, competition and the distribution of forces between players in each area. Today, the importance of the management company is increasing, and the emphasis is shifting from tactical tasks - legal and financial support for the center’s activities, technical and economic maintenance issues - towards strategic tasks, namely managing the concept of the shopping center. The management company must choose the right policy for cooperation with tenants and provide conditions for the effective functioning of all enterprises in the center. Only in this case will the center be able to maintain its position and remain attractive to both groups of clients.

Tasks that are solved in the process
operation of the shopping center:

1. Conducting marketing research.

  • studying the characteristics of the center’s attendance (frequency, regularity of visits, increase in attendance by representatives of the selected target audience, coverage of the territory, use of transit vehicular and pedestrian traffic);
  • assessment of the center’s brand awareness and popularity among the target audience;
  • perception of the shopping center's image (whether the center is considered expensive or cheap, modern or outdated, convenient or inconvenient, and whether the owner's opinion corresponds to the point of view of consumers);
  • assessing the degree of satisfaction of visitors' needs for goods and services, collecting information about making purchases, spending in the center, and the time spent by visitors in the center;
  • studying the characteristics of the purchasing environment, changes in consumer preferences;
  • deeper study of consumer behavior of selected target groups;
  • assessing the effectiveness of shopping center advertising.

2. Planning and coordination of marketing and advertising work.

  • providing tenants with the results of research, current information about the center’s attendance and its position in the market;
  • providing tenants with information about long-term development plans for the center (during expansion or reconstruction);
  • drawing up a plan for marketing and advertising activities, coordinating shopping center advertising plans with tenant plans. Organization of joint promotions and loyalty programs in which several tenants participate;
  • seasonal and festive decoration of the shopping center, development of a design concept and carrying out work on the festive decoration of facades and common areas. Coordination of seasonal decoration of tenant windows with the management service of the shopping center;
  • organizing events in the shopping center (performances, concerts, exhibitions, children's parties, everyday animation);
  • planning and implementation of advertising campaigns in the media;
  • regular support and changes on the shopping center website;
  • organizing sound, music and aromatic design in a shopping center (as part of a conceptual navigation system), creating pleasant and comfortable conditions for visitors.
  • provision of necessary structures and communications for advertising on the building and in common areas, placement of additional signs and advertising, control of outdoor advertising, organization of advertising for tenants via radio and telecommunication systems of the center.

3. Assistance to tenants in resolving current issues.

  • studying tenants’ satisfaction with work within the shopping center, as well as with the services provided to them by the center;
  • coordination of loading schedules, control and assistance during ongoing repair work on tenants’ premises;
  • providing information and consulting tenants on legal and economic issues related to their activities in the shopping center.

4. Regular monitoring of the work of tenants.

  • assessing the stability of tenants (chain and independent stores), taking into account changes in the network. In the course of flow studies, it is revealed whether the attendance of the main “magnets” of the shopping center has changed, which tenants are strong “middle peasants”, and which enterprises are the weakest, unable to even use the flow into the shopping center;
  • quality control, compliance of the assortment and level of service, operating mode with the stated requirements;
  • assessing the role of tenants and their importance for the shopping center, conducting research on the activities of individual operators (attendance, purchases, attracting a specific consumer audience, identifying the reasons for poor performance in the shopping center).

5. Fulfillment of the rental income plan.

  • changing, if necessary, the rental rate, rental payment scheme, providing special conditions for tenants;
  • control of timely receipt of rental payments;
  • protection of the owner of retail real estate from possible losses in case of non-payment or late payment of rental payments;
  • legal regulation of disputes with tenants.

6. Ensuring the filling of areas.

  • assessing the risks of vacating space, developing alternative options in case of tenants moving out, including anchor ones;
  • taking into account changes in store formats and assessing the possibility of redevelopment of premises in the future;
  • active position in working with tenants: regular market monitoring, search for promising tenants;
  • processing applications from new potential tenants, drawing up a so-called “waiting list” (list of applicants for vacant space);
  • quickly filling vacant space and carrying out renovation work, so that in the event of rotation, a new operator can open in the center as quickly as possible;

7. Operation of the building and economic maintenance of the shopping center.

  • ensuring uninterrupted operation, repair and maintenance of building engineering systems, maintaining a fleet of technical equipment in working condition;
  • drawing up cost estimates for maintaining a shopping center, optimizing these costs;
  • maintaining the buildings and premises of the shopping center and the surrounding area in proper condition. Formation of current and long-term plans for reconstruction, major and current repairs of buildings and premises, engineering systems (ventilation and air conditioning, water supply, heating, sewerage, electrical networks, etc.);
  • engaging third-party organizations to carry out work, quality control of work and acceptance of completed work.
  • monitoring the consumption of utilities in a shopping center, calculating payments and interacting with city utilities;
  • carrying out work to improve the territory, interacting with state and local authorities on improving the transport accessibility of the center (entrances, turns, organization of controlled crossings, etc.);
  • maintaining the premises and territory of the shopping center in proper sanitary and hygienic condition (cleaning, garbage removal, waste disposal);
  • ensuring the safety of staff and visitors of the shopping center, the safety of inventory, fire safety;
  • transport support for the activities of the shopping center.

Many businesses today rush to cut costs without thinking about the future. Particularly noteworthy are the costs associated with the package of services for the regular and constant operation of the shopping center. This package of services includes two groups of costs: a) for maintaining cleanliness, safety, and routine maintenance; b) for research, marketing and advertising. The operating costs of various tenants (energy and water consumption, load on the building's engineering systems) are quite easy to calculate and are paid by tenants in accordance with resource consumption. With the determination of the amount of expenses for cleaning, security, and the like, everything is also more or less clear; they can be included in the rental rate or paid additionally, in proportion to the area occupied by the tenant. And it is, in principle, not difficult to establish competent operation of the maintenance service; fortunately, in our country there are many experienced business executives who are able to optimize costs and increase the owner’s profit (and at the same time ensure their moderate “interest” without causing obvious dissatisfaction with the owners). The system for training modern engineering specialists in Russia still works, and although experienced engineering personnel are a scarce commodity on the labor market, the commercial real estate sector with fairly high salaries is attractive for good specialists. It is much more difficult with the marketing of a shopping center; this is where problems begin both with determining promotion costs and with personnel. Today it is simply dangerous to forget that the second group of expenses is also an integral part of the work that must be carried out constantly and daily. Marketing research and advertising work in the current environment are among the most pressing tasks, and unsuccessful “optimization” of marketing and promotion costs can lead to very serious negative consequences. When there is no marketing management system in a shopping center, it is not enough to resort to the help of third-party organizations that fulfill one-time orders. Obviously, the results from one-time actions will be worse than from constant work. It’s the same as not brushing your teeth every day, but instead visiting the dentist every three months to get everything in order: it will cost more, as the degree of neglect increases, and current problems will bother you more and more.

Having decided that ongoing research, tenant evaluation, marketing and advertising should be ongoing, the manager must determine sources of budget revenue. Mall marketing and advertising fees are a topic of controversy. Sometimes they are included in the rental rate, but more often they are paid additionally, and if the terms and procedure for paying for marketing activities are not clearly stated in the contract, additional payments are perceived as extortion and cause dissatisfaction among tenants. In centers with several owners, it can be difficult to convince all space owners of the need for deductions; one part of the owners agrees to pay, while the other flatly refuses. As a result, marketing and advertising budgets turn out to be clearly insufficient to solve problems. If, for example, the owners of 20% of the space, the most conscientious ones, agreed to pay, then they are faced with a dilemma: choose an economical solution or increase the size of their contribution. Internal conflicts regularly break out due to injustice, because some owners bear a much greater financial burden, and everyone, including the “freeloaders,” benefits from the results. The results of studies on advertising for tenants of shopping centers indicate that advertising is low in effectiveness, since the buyer comes not to a specific store, but to a shopping center and can fall for many temptations and spend money with any of the operators. Only 30% of the people attracted by this advertising can reach a store that advertises in a shopping center, and the rest of the flow will be “absorbed” by other tenants. As a rule, the percentage of people who arrived based on a specific advertisement and reached the store is higher for large anchor tenants - a hypermarket, supermarket, household appliance store, hardware store, and the lowest percentage for clothing, shoe, and impulse goods stores. Many promotions begin to make sense when they are carried out simultaneously by several tenants. For example, sales in shopping centers in Singapore and Dubai are held annually at a certain time, all tenants participate in them, and buyers plan in advance to attend these sales and come from different countries and from different continents. At this time, activity in all shopping centers and boutiques of the city increases significantly. Various shows, festivals and other events on a citywide scale are tied to sales, the load increases and turnover also increases in other profitable areas - in the hotel sector, in public catering, in entertainment complexes.

Now that the rental market has undergone significant changes, many tenants will be of the opinion that regular marketing and advertising should be included in the all-inclusive rate - as a package of services attached to an area of ​​a certain quality. Indeed, the area in a shopping center is not only about square meters, structures and engineering, but also about the mandatory provision of trading activity.

The list of priority tasks also includes an assessment of tenants: their current situation, work prospects, possible changes in formats. There is a good Russian proverb: “Kalina says, I’m good with honey, and honey in return, and I’m good myself.” Likewise, shopping centers are divided into two types. Some centers will work well in any case, because they are very well located, and in order to ruin such a center, you have to try very hard. And other centers will only be good if they have good anchor tenants. It is imperative to provide for various scenarios for the development of events and prepare alternative rental options. Even before the fall of 2008, there were cases when anchor tenants gave preliminary consent, a pool of small operators was gathered for them, and before signing the contract, a new manager came on stage from the “anchor” side demanding other, more favorable conditions. What can a shopping center owner do? When there is no alternative, his negotiating position will be very, very vulnerable. In 2008-2009, cases began to become more frequent when large chains planned to open stores in shopping centers, and premises were already prepared for them (conducting communications, making repairs and remodeling), but during the crisis, plans for the development of chains were revised, and from opening new stores had to refuse due to lack of funds. Owners of shopping centers, especially existing ones, find themselves in a very unpleasant situation. Not only were funds spent on reconstruction, but large areas remained unoccupied: the very concept of the center is under threat. In such a situation, we have to seriously work on creating a “composite magnet” of local operators. Those companies that have their own retail divisions and experience opening their own stores in shopping centers have an advantage: the space can be operated independently, and if you are serious about it, income can exceed rental income. Some development companies - both federal and local - expanded their business and created their structures in areas where rental rates for anchor tenants were low (hypermarket, supermarket, entertainment complex, food court), and/or there was a shortage of experienced operators . Of course, it seems that renting out space means solving problems for many years to come, providing yourself with income that seems to come on its own, from square meters of real estate, and no longer worry about daily operational issues. But if the company has the resources to develop a retail business, this ensures a certain sustainability of the project, since two alternative sources of income appear.

When planning the operation of a shopping center for the future, the manager must take into account possible changes in the needs of tenants for space. It is likely that store formats will change to present more efficient assortments in a smaller area. Let us note one significant phenomenon. At the beginning of the crisis, in the 4th quarter of 2008, a decrease in turnover of up to 30% was noted in a number of non-food stores, and in the 1st quarter of 2009 the decline already began to reach 35-40%. Managers of some retail chains, who in the first half of 2008 carried out an analysis of the efficiency of space use, recalled that in large formats they met exactly this percentage(30-35%) of poorly performing area. For example, chains of office supplies or computer equipment, which developed on an area of ​​up to 200 sq.m., tried to develop an area of ​​700 sq.m., clothing chains with experience in operating on an area of ​​up to 120 sq.m., opened a new type of store with an area of ​​200-250 sq.m. m. The highest profit rates per 1 square meter in non-food trade were in small stores with an area of ​​30-200 sq.m. A large area sometimes did not have a significant impact on the growth in the number of store visitors, and when the store area increased, for example, by 3 times, the profit per square meter of area decreased by 5-6 times compared to small stores. What does this mean? Symptoms of “bloated” areas have been observed for a long time. Traders in a downturn in the economy will be interested, firstly, to reduce the size of their space. Secondly, increase the efficiency of using existing square meters, add new product groups, giving preference to goods with the following characteristics: a) closer to the main type of demand, more necessary for the regular support of the activities of households and corporate clients; b) giving high profits; c) having a small size. For example, a DIY chain can develop a regional format on an area of ​​up to 300 square meters in residential areas and present two categories in stores: “products for home craftsmen” (frequently demanded building materials in small packages, hand and electric tools) and the category “home engineering equipment” . The presence of tools and power products of a highly profitable product and at the same time not very large in size makes it possible to achieve efficient use of space. For a media and stationery store, the obvious solution is to add digital equipment to the assortment, thematically related to the store concept, and “gadgets,” small portable electronic devices and accessories.

If domestic traders turn out to be active enough, they will look for new production centers and change purchasing technology: for example, buy high-quality goods from manufacturers in China and Southeast Asia whose capacities have been freed up due to a decrease in supplies to the United States and European countries. But in general, negative economic trends are expected to lead to a reduction in the number of stores, the disappearance of some formats, and possibly a reduction in space for standard chain stores.

A condition for effective management of a shopping center is that the manager’s motivation must be linked to performance results. The quality of the management company's work is assessed by the degree of satisfaction of two groups of shopping center clients - visitors and tenants. Consumer recognition is evidenced by the results of marketing research and meter indicators, and the management company’s evaluation criteria are the growth of traffic, the stability of visits and the frequency of visits to the center, and increasing the brand awareness of the shopping center. And the quality of services for tenants is assessed by ensuring the required level of rental income, balancing the composition of tenants and maintaining the concept of the center, by the absence of rotation of tenants and the rapid filling of vacant space, by the increasing interest of new tenants in working in the center and the number of applications. One of the advantages of an external management company is that it is usually more interested in an integrated approach and the satisfaction of both groups of clients, and the external manager correctly assesses the situation and sets priorities. And the internal manager, like any hired employee, follows the instructions of management, the emphasis is on those indicators for which the employee is motivated, but priority tasks may be determined incorrectly. For example, the emphasis is on fulfilling the financial plan and reducing costs, but the overall concept of the center is not taken into account, the needs of tenants are ignored and the opinions of visitors are not studied. Therefore, the approach turns out to be one-sided. The dissatisfaction of the center's clients may accumulate, and one day the owner of the retail property will be faced with serious problems. The Chinese sage Confucius said it best about what good management means: “Good management is when those who are nearby are happy, and those who are far away come.” Both tenants and visitors.

Kira & Ruben Kanayan,

Leading consultants of the company "Union-Standard Consulting", Moscow,
authors of the book " Retail real estate: challenges of time and prospects »,
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When selling a retail property, one of the most important aspects is implementation of effective shopping center management. To perform these functions, a third-party management company may be involved, or management may be carried out by the owner of the shopping center.

How is a shopping center managed?

Shopping center management means technical control and optimization of the following parameters:

  • reserves for the development of a retail facility;
  • building effective management of a shopping center;
  • interaction with contractors, tenants;
  • measures necessary to increase the attractiveness of the shopping complex for end consumers.
  • water supply and sewerage;
  • heat supply;
  • electricity supply;
  • Fire safety;
  • Internet, telephony;
  • general safety;
  • vehicle parking;
  • object certification;
  • cleaning the building;
  • maintenance of the building roof and storm drainage system;
  • vertical transport (escalators/travelators, elevator equipment).

The management of the shopping center is carried out on the basis of the following documents.

  • General rules for the functioning of shopping centers, taking into account the provisions of lease agreements.
  • Staffing table of the management company.
  • Work structure and job responsibilities of management company employees, including working time timing.
  • Basic provisions for the functioning of a (own) management company in a shopping center.

Such a large and complex real estate property as a shopping center requires constant resolution of issues related to the technical and engineering features of the building’s operation, the financial part, brokerage and a number of other issues. Therefore, it is better to entrust competent management of a shopping center to specialized companies that can provide professional assistance in resolving issues that arise.

Features of managing a shopping and office center

2012-10-09 Please provide an example of the optimal composition of a management company for a shopping center (position, main functions). Ideally with 5-6 employees.

Question asked by Elena Yanovskaya, Kyiv

Answer:

The number and composition of the management company’s employees depends on several factors:

Management of one commercial real estate object (shopping center) or several;

What is the area of ​​the shopping center and the composition of tenants, the ratio of anchor tenants and “cuts”;

Will all functions be part of the company’s own management company, or will third-party organizations be involved on an outsourcing basis (for example, security, cleaning, marketing services, etc.)

The main functions of the management company are as follows: management of the concept of the shopping center and the composition of tenants, management of profitability and financial flows, marketing management, technical operation management. You can learn more about the tasks and functions of a management company, as well as the features of managing retail real estate at the present stage, at the seminar by Kira and Ruben Kanayan “Shopping centers and multifunctional complexes.”

2012-07-25 If there are 13 tenants on the floor, and they all open and close at different times. How can this be adjusted?

Question asked by Vadim Golub, Volokolamsk

Answer:

Indeed, it is very important that all stores are accessible to customers during shopping center hours. This determines the overall image of the shopping center and the quality of work of the Management Company. In order for tenants to comply with opening hours, it is necessary to introduce the appropriate rules into the Regulations of the shopping center (Appendix to the lease agreement). The document must also clearly state penalties: for late opening of a store, for closing a store during the shopping center’s opening hours, and for closing before the end of the shopping center’s opening hours. The procedure for drawing up a report on violation of the Regulations and the procedure for applying penalties are also prescribed.

I am a representative of the shopping center developer company. They built it on the basis of shared participation in construction investment, and as a result - about 20 “owners” of the shopping center. How can we, as a future management company, distribute advertising space among the owners on the façade of the building?

Question asked by Tatyana Ivanova, Arkhangelsk

Answer:

The most reasonable solution in this situation is still not to divide advertising space between owners. And first determine all possible places for its placement. And the income from advertising placement is divided among the owners in proportions according to their share participation.

Is there a basis for personnel management in shopping centers? Perhaps there are special specifics of employee management in these enterprises?

Question asked by Olga Kulmanakova, Tomsk

Answer:

Of course, there are specifics to personnel management in shopping centers. Because the shopping center itself is not just a retail store, but a large trading enterprise with a large number of production relationships. In order for a shopping center to function successfully, it is necessary to carefully work out the interaction patterns of all departments and employees, the organizational structure of the entire enterprise, the management of sales personnel and much more. Unfortunately, such disciplines are not taught in institutes, so if you are really interested in the answer to this complex and voluminous question, we suggest you attend the training seminar by K. and R. Kanayan “Practical issues of personnel management in a trading enterprise.”

Answer:

Hello, please tell me, is it possible to manage a shopping center through a specialized organization, and not through an association of owners, if there are more than 5 owners, or in another way? What's the best way to do this?

Question asked by Olga Milenko, Minsk

Answer:

Yes, a special management company can be hired (or created) to manage a shopping center. Three forms of contractual relations are possible between the owner and the management company: a) trust management agreement (the management company independently carries out all work on managing the property); b) agency agreement (the management company acts as an intermediary between tenants and the owner of the shopping center); c) lease agreement (the management company conditionally leases a retail property and enters into a sublease agreement). The optimal form of relationship between the owner and the management company is determined individually.

By what principles is the shopping center management system organized, and how is the management process itself carried out?

The question was asked by Anna Stalinkova, Novosibirsk

Answer:

There are two forms of shopping center management:

  1. Creation of your own management structure for retail real estate. This may be a separate company or a division within a company that owns commercial real estate.
  2. Involvement of an external management company. Typically, a company is selected that specializes in the management of shopping, shopping, entertainment and multifunctional complexes and already has sufficient experience in management.

The main tasks that the management structure solves:

    management of the composition of tenants, relations with tenants of the shopping center (selection of tenants, negotiations, execution of contracts and legal support of contracts, control of assortment, quality of tenants’ goods, etc.);

    management accounting and financial flow management;

    marketing, advertising of a shopping center (conducting research, concept and, if necessary, reconception of a shopping center, implementation of a marketing strategy, advertising and PR, including planning shopping center advertising campaigns, joint events with tenants, regulation of seasonal, promotional advertising of tenants, etc.) ;

    operation of the building (monitoring and ensuring the uninterrupted operation of engineering systems, repairs of the building and engineering systems, security and safety, cleaning of premises and surrounding areas, garbage removal, relations with utility services, etc.).

The management company "GOROD" LLC has been operating in the real estate management and operation market since the mid-90s and provides professional services for the management of buildings and structures. The facilities served include large and technically complex facilities, such as: the Moscow Palace of Youth, OJSC Ros Corp, OJSC GIS, a large logistics complex of OJSC Biryulyovo, a network of Medsi clinics, the European Medical Center, office and shopping centers.

Commercial management of real estate as a business includes:

  • Development of concepts and re-conceptions of shopping and office centers;
  • Search and selection of tenants;
  • Management of rental relations;
  • Monitoring the rental market and bringing its level into line with the market;
  • Accounts receivable and financial flow management;
  • Promotion and development of real estate;
  • Increasing its attractiveness for tenants.

LLC "GOROD" takes full responsibility for the operation of power supply systems, heating, water supply, ventilation and air conditioning, elevator facilities, low-current systems, and dispatch systems. We also free our clients from relationships with city utility structures and regulatory authorities.

LLC "CITY" has a powerful technical base, its own emergency technical and dispatch service, has licenses and certificates for servicing all systems, and is a member of the SRO. The company's liability to customers is insured for $1,000,000. Quality standards are certified according to ISO 9001-2008.

As part of the energy audit license, the management company LLC "GOROD" conducts surveys of enterprises for energy efficiency and develops energy passports, which since 2012 are mandatory for large and energy-intensive facilities.

Our company has developed corporate standards for technical operation, allowing us to bring the process of operating buildings and engineering systems to a qualitatively new level. The company constantly operates an internal audit system of processes, which allows it to maintain a high level of quality.

The accumulated experience and established team of qualified engineers and technicians allow our clients to have trouble-free operation at their facilities without emergency situations and, therefore, reduce the cost of maintaining buildings. Unification of technologies and proven procedures make it possible to carry out work with fewer personnel, which means saving the customer money on operation. The company's repair and construction division allows us to quickly and efficiently carry out various minor and major repairs and redevelopment of premises with a minimum of hassle for the customer.