We're in this together

More so than any other product type, retail requires a partnership between the landlord and tenants for mutual success. As compared to office space, a retail tenant’s location and fellow tenants are directly linked to the company’s profitability and therefore a justifiable lease rate. If I am an international bond trader does it really matter a great deal who the tenant is next to me or if I am on the second floor or the twentieth? Not so with retailers – location, location, location and neighbors, neighbors, neighbors. Maybe that is why the experts classify the type of retail centers Baceline owns as Community Centers or Neighborhood Centers.

And with the challenging economy for most retailers AND landlords now is the time to make the most of the “partnership.” Neither party has any dollars available for aggressive marketing yet there is opportunity for both to capture market share from nearby, disgruntled customers. The same local tenant down the street whose customers could also boost revenues for our tenants if they were a closer neighbor, may be a friend, supplier, competitor or complementary business to one of our tenants. Our existing tenants are one of the best sources for not only identifying new tenants but closing the deal.

Let’s do some low cost, creative marketing campaigns together, providing more time and resources than thousands of dollars in print advertising. As a landlord we can provide vacant space and signage for a community event, the tenants can provide discounted merchandise for giveaways and personnel to work the event. The community event sponsor can provide the much needed foot traffic and public relations buzz to the retail center. Let’s be a neighbor in the community.

Maybe like my nephew, who manages a YMCA in Eugene, Oregon, we can announce that all unemployed get free memberships. That little well intentioned, community supportive idea ended up being shown on the Today Show for the whole nation to see, much less the unemployed in Eugene…who of course showed up in droves. And of course the Y was overwhelmed. Seems like it is always the smallest, well intentioned actions that get all the attention and the mega campaigns bomb. We could only be so lucky.

Misery may love company but certainly retailers and landlords certainly love company. We’ll all feel better in the long run and hopefully make it there!