1. Managing Retail Property Shopping complex building
Topic 9
Abdul Jalil Omar
Department of Real Estate Management
Faculty of Technology Management and Business

2. Suria KLCC

3. Toronto Eaton Centre, Canada

4. Bristol City Centre, England

5. Bullring Shopping Complex, Birmingham

6. West Edmonton Mall, Canada

7. Defining Shopping Mall
A shopping mall, shopping centre or shopping center is a building or multiple buildings consisting of a complex of shops representing leading merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit and a convenient parking area, a modern version of the traditional marketplace

8. Early shopping centres
An early shopping center in the United States was Country Club Plaza, which opened in 1924 in Kansas City, Missouri.

9. Early shopping centres
Other important shopping centers built in the 1920s and early 1930s are the Highland Park Village in Dallas, Texas; River Oaks in Houston, Texas; and Park and Shop in Washington, D.C..

10. Evolution of the Shopping Mall
a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region.
The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into one encompassing structure.

11. Evolution of the Shopping Mall
However, the concept of the fully-enclosed shopping mall did not appear until the 1950s. The idea was pioneered by the Austrian-born architect and American immigrant Victor Gruen.
This new generation, that were eventually called malls, included Northgate Mall, built in north Seattle, Washington, USA in 1950, Victor Gruen's Northland Shopping Center built near Detroit, Michigan, USA in 1954, and Gulfgate Mall in Houston were all originally open- air pedestrian shopping centers that later were enclosed as malls.

12. Classification of Shopping Centres
Can be classified by
Market area
Pattern
Ownership or merchandising

13. Classification of Shopping Centres
Traditionally, SCs have been grouped by market area
Strip
Neighbourhood
Community
Regional
Superregional
The retail store that serves as athe focal point for a centre is known as the
Key tenant or anchor tenant

14. Classification of Shopping Centres
Market Area Classifications
Commercial strip centre
Convenience centres that located on the edge of the urban areas or suburbs with 10,000-30,000 sq ft area.
The straight line of stores for parking allowance
Neighbourhood centres
Small stores to cater for the needs of 1,000 families to support their activities.

15. Classification of Shopping Centres
Community centre
Anchored by smaller local departmental stores
Regional centre
Major departmental stores to serves a radius of 10 to 50 miles radius of local community
Super regional centre
The largest type and serves 1.5 million sq ft or more shops

16. Classification of Shopping Centres
Pattern Clasification
Neighbourhood strip centres
The L – Shape centre
The U – shaped centre
Cluster-design centre
T- design or triangle centre
Dumbbell or double dumbbell

17. Classification of Shopping Centres
Anchor tenants
Key tenant – usually situated in the shopping complex building
Merchandising classifications
Discount or factory outlets
Specialty centres
Power centres
Mixed use developments

18. Classification of Shopping Centres
Example of a small strip mall in Santa Clara, California.

19. Largest shopping malls

20. Golden Resources Shopping Mall
the mall has earned the nickname Great Mall of China, owing to its total area of 7.3 million square feet (680,000 square metres) over six floors. At 1.5 times the size of the Mall of America, Golden Resources Mall was the world's largest shopping mall from 2004 to 2005.
The mall was completed on 20 October after 20 months of construction and opened four days later

21. Mid Valley Megamall 4.5 million square feet
1.7 million of leasable area
Shopping mall
Office tower
2 hotels – Cititel, Boulevard
5 anchor tenant
- Carrefour, Jusco, GSC, Metrojaya, Harvey Norman
430 shops
Link to The Gardens

22. Marketing retail property
Signage
Preleasing phase
Established centres
Display advertising
Brochures
Direct Mail
Personal contact
Newspaper pull out sections
Promotional efforts
Leasing agents

23. Leasing Retail property
Qualifying retail prospects
Tenant mix
Location
Prospect’s needs

24. Anchor Tenant
Usually the first, and the leading, tenant in a shopping center whose prestige and name recognition attracts other tenants and, it is hoped, shoppers. Anchor tenant generally pays rent rate lower than that paid by ancillary tenants.

25. Anchor Tenant

26. Leasing Retail property
% leases
Straight %
The rental rate is based solely on a % of the Gross income of the business with no min guaranteed rent
Fix minimum
E.g. Min rental RM 500 and the % of 5% of annual gross sales, the tenant who has a yearly sales volume of RM 100, 000. will pay base rental RM 6,000 for the year

27. Leasing Retail property
Average leases
Adjusted on an annual basis. E.g.
if yearly gross sales less than RM120,000, base rent paid will be still RM6,000.
If exceed RM 220,000 , the base rent paid is: RM 6,000 plus average rent of RM5,000. (RM220,000 X 0.05 = RM11,000 – RM 6,000 = RM5,000)

28. Leasing Retail property
Negotiating the lease
The standards rights and obligations of landlord and tenant stipulated in other lease forms
Setting the lease
Calculating space
% of rental rate to business volume
Tax participation clause
Gross sales
Financial audits
Method payment

29. Maintenance of retail property
Familiar with
The heating
Air conditioning
Internal traffic flow
Signage
Utility distribution
Waste management
Electronic security systems
Other related building matters

30. Administrative responsibilities
Financial reports
Actual income
Expense items
Operating budget
Capital expenditures
Preservation
Income-producing capital expenditures
Monthly cashflow forecast

31. Administrative responsibilities
Monthly income and expenses statement
Profit & loss statement
The budgeted amount
The actual figures
The variance between budget estimates and real costs
Insurance for shopping centres

32. Experience from The British Council of Shopping Centre's (BCSC) Conference and Exhibition (2007)
provides a useful channel for UK practitioners in shopping centre management and service provision, together with researchers, to share good practice and to keep pace with the fast changing retail environment evident in the UK.
The BCSC was established in September 1983 – its missions being to promote best practice in the development and management of the retail environment and to portray a common vision, helping their members work together, exchange and develop information and advance the professional and commercial aims of the retail property industry as its centre of excellence

33. Experience from The British Council of Shopping Centre's (BCSC) Conference and Exhibition (2007)
In the opening greetings, the BCSC's president, John Bullough highlighted two issues that will be the major focus of BCSC in the coming year:
Social engagement
Nowadays shopping centres are part of the community and inevitably they have a significant impact on communities and local employment. Retail destinations are at the forefront of economic and social improvement in towns and cities across the country, and the retail property industry has the capacity to lead the way in best practice in community engagement.

34. Experience from The British Council of Shopping Centre's (BCSC) Conference and Exhibition (2007)
Sustainability
The customers, investors and society at large demand sustainable and socially responsible property operations led by the professionals in the industry. Furthermore, those that are able to keep pace with the market change in the area of sustainability will make significant commercial gain over time.

35. The future of brands
Ralph Ardill expressed his concerns that shopping places of the future will struggle to compete unless they become more customer-centric and learn from current innovations in the world of brands and branding.
His research reveals ten brand forces that will play a major role in shaping consumer's perceptions, expectations and relationships in the near future.

36. 10 Brand Forces
Keeping it real. The shoppers are becoming more powerful and the expectation of shopping experience is shifting towards more end-users focussed and people-centred design of shopping centres. This puts pressure and increasing challenge on shopping centres to move forward and act in a consumer context by developing a suitable built environment and frontline service to help them “keep it real”.

37. Top 100 Brand

38. 10 Brand Forces
2. Telling us stories. Brands will increasingly embrace the art of storytelling to articulate their points of difference and the value and personality of their business. In order to deliver the utmost shopping experience to the shoppers, shopping centres

39. 10 Brand Forces
3. Getting organised. Brands and branding will more precisely reflect the real identity of a business. The shopping centre will have to re- evaluate their place in people's lives and build much more clarity and meaning around what they stand for and believe.

40. 10 Brand Forces
4. Making things simpler. The world is becoming more complex and shoppers are faced with many choices. Thus, shopping centres should provide facilities and environment that will simplify and add value to the shopper experience.

41. 10 Brand Forces
5. Changing our lives. Consumers will increasingly turn to brands to help them fulfil their more complex human needs and improve the quality of their lives. Shopping centres have the opportunity to provide much more compelling reasons to consumers by introducing new facilities, exciting events and offering more convenience to them.

42. 10 Brand Forces
6. Getting closer to us. The organization becoming truly “customer-centric”, that translates customer needs and insights into business decisions and will make the shopping centres more meaningful and significant to our lives.

43. 10 Brand Forces
7. Feeling the difference. The branding approach will put more effort into influencing the consumers' behaviour. This will need a wider role from the professionals and shop-floor workers of shopping centres to provide an incomparable environment for shoppers.

44. 10 Brand Forces
8. Caring for our communities. Brands will increasingly look to invest in activities and initiatives that enable, mobilise and nurture our communities of interest. Community engagement will help the development of brands of a shopping centre.

45. 10 Brand Forces
9. Getting more experienced. Brands will focus in creating something more experiential to the shoppers using the “top notch” facilities that could accommodate great events in a shopping centre.

46. 10 Brand Forces
10 Daring to dream. The consumers' mind, emotions and behaviour will be the driver of future brands activity. Improvement and innovations are needed to fulfil the needs and wants that will be valued most by the shoppers.

47. Summary
Shopping complex or retail most important element is focusing in the customer satisfaction and through customer supports in every angle of needs. Rules: 1. Customer always right, 2. If the customers wrong, refer Rules #1.

48. References Decarlo (1997), Property Management, Thomson.
Kyle, R, (2000), Property Management, 6th Edition, Dearborn.