Leasing is value creation. The execution of excellent retail projects depends on senior development and leasing executives working effectively in concert for bespoke, market-driven designs. Our established working relationships with the key retail houses, both within the region and internationally, empowers mSquared with a dominant advantage of proprietary knowledge of each retailers' dynamic requirements.
DEFINING THE RETAIL PLAN
As a first step, we thoroughly research and study the market to define and verify the aspirations and positioning of the project. The targeted trade area, competitor analysis, penetrations and retail sales market shares are all considered at this juncture; all of which determine the total centre sales projections which, in turn, defines the optimum composition of the centre.
This leads into the anchor strategy for the centre, which defines the USPs and anchors, size, orientation and required infrastructure, specifically access (ingress and egress), parking and service bays, all of which have a tremendous bearing on the project, directly impacting the ultimate financial performance of the investment.
Subsequently, anchors, majors, mini-majors, flagships and inline retail ratios are defined and revenue modeling and retail plan adjustments are carried out to ensure that the financial KPIs are assured.
PRO-FORMA RENT PROJECTIONS
With the merchandising plan and tenancy mix defined, the next step is to run sales projections on a unit-by-unit basis. This allows us to accurately set realistic rental levels that are a product of retail use, sales productivity and margins.