Real estate brokerage: intermediary services defining the concept of the shopping center
Real estate brokerage is the provision of professional mediation in the search for tenants and buyers of commercial properties. Also, brokers have the right to negotiate with stakeholders on behalf of the property owner. Finally, brokerage organizations facilitate the conclusion of lease or sale agreements between the owner and the lessee or the buyer.
The intermediary works under the Agency Agreement, receiving remuneration in the form of 3-5% of the cost of the sold objects and 7-11% of the annual rent. In some cases, developers have their own brokerage units. In recent years, consulting on a regular basis was added to their services.
Brokerage is carried out at the stage of the finished at least 80% of the project. The first stage includes market research and analysis of the finished project to attract the right pool of tenants. In particular, the anchor tenant of a modern shopping center can be a popular trading network that decided to enter a new market. In this case, the project will quickly catch up with other customers.
According to the results of market research, there is an initial zoning under the alleged retailers and entertainment infrastructure. Thereafter, financial issues are worked out. Finally, together with the architects, brokers find the optimal location for all future residents of the shopping center or shopping and entertainment complex. Thus, brokerage helps to determine the concept, positioning of the object and predict the current rental rates.
Real estate brokerage helps to track consumer preferences
Intermediaries should not only protect the interests of the management company. In particular, in one of Kyiv shopping and entertainment complexes, a popular Swedish clothing brand put forward seemingly draconian conditions for rental rates. Brokers decided to take a risk and did not insist on the requirements of management. As a result, the total profit of the shopping and entertainment complex exceeded the forecasts by 20%.
A separate area is work with retailers who have not previously planned to enter the Ukrainian market: to do this, experts participate in international specialized exhibitions and conferences.
Of course, the presence of a popular international brand in the shopping and entertainment complex is not a panacea for all ills. The activity and payback period of the shopping center depends on the effective work of all tenants – so that each organization is really in its place.
The dynamics of net operating income is directly related to a number of indicators, each of which requires separate work. Income is related to the number of consumers, their purchasing power, reviews and comparisons. When problems are detected, the situation is analyzed. A separate issue is changes in consumer preferences. To meet them, changing of the composition of tenants, redesign and changing the concept are needed. In this case, a third-party broker can be a source of valuable advice and recommendations.