Retail Property Managers – How to Track Financial Performance of Your Tenant Mix

The performance of a retail property is not just about the rent or the net return. There are a number of other things that come into the financial performance equation. When you identify the right financial benchmarks to track, you can see and set the performance of the retail property that the landlord requires. It also helps you set and drive a better tenant mix strategy.

When the tracking of financial performance is neglected, you quickly see the Retail Property and cash flow disintegrate and destabilize.

Here are a few key facts and trends to track in the financial performance of a retail property.

  1. Get the trade numbers and turnover figures off your tenants on a weekly and monthly basis. In doing this be sensitive to confidentiality. Only you as the property manager and the landlord should see and analyse the figures. From these figures monitor trends in the trade of tenant groups. If one tenant group is trading better than others then you know you have an issue with the tenant mix. That then comes down to a decision as to what the customer requires and why you are not serving it. Consideration regards the demographics of the shopper then become critical at the time of lease renewal or letting of vacant area.
  2. With Retail Property, outgoings and occupancy costs are critical to the landlord and the tenant from different directions. The landlord wants a better net return, and the tenant wants a viable business. Uncontrolled or escalating outgoings can destroy both. This then suggests that the outgoings for a Retail Property should be carefully monitored and compared to properties in the area of similar type. Higher property outgoings will also remove your competitive edge when leasing vacant areas.
  3. Tenants know what they should pay when it comes to occupancy costs. The outgoings costs in Retail Property are generally higher when compared to other types of Investment Property. This is due to the higher levels of presentation and property performance generated from and the result of customer and tenant interaction. A busy shopping centre will always have higher outgoings simply because of the demand on daily presentation. More people through the property means higher costs of running.
  4. Every Retail Property should have a property budget. In that budget all matters of income and expenditure should be tracked throughout the year. When it comes to income, this is easily achieved from an analysis of all the leases given the trends in the property market. When it comes to expenditure, this tracking process will be achieved from history of expenditure together with acceptable predictions of cost escalations in the region.
  5. The tenancy mix of the property should be broken into regions or zones based on the property design and layout. The turnover figures should then be tracked within those regions or zones. What you’re looking for is a significant difference in turnover trending between zones. This will tell you when customers prefer to shop in particular parts of the property. There will be reasons behind this that have to be identified.
  6. Municipal rates and taxes are a significant cost burden on the operation of a Retail Property. They are what we call uncontrollable outgoings because they are dictated by the local municipal council. The rates will normally be set by some equation centred on the unimproved value of the property. This then says that when the property is valued you have to be very mindful of any ability to challenge the value set by the municipal council. Whilst it might be very nice to have a highly valued property, it will reflect straight through to the outgoings and impact both the landlord and the tenant. It is notable and of some concern that the rates and taxes for a Retail Property are generally over 1/3 of the outgoings costs. Any savings you can make in this area will significantly impact the net return for the landlord.
  7. Track the vacancy trends in the property so that you know and see the potential drain on cash flow that a vacancy can create in the future. Proactive landlords and property managers tend to work well ahead of any vacancies and leasing problems. This is usually 24 months away from the event. It allows you to make key decisions and changes as appropriate. It also allows you to make changes in the tenancy mix if that is required.
  8. In any older property the requirements of refurbishment and redevelopment will be critical to the property business plan and ongoing customer visitation. The lease for the older Retail Property and all the tenancies contained therein should integrate terms and conditions that allow the landlord to refurbishing and redevelopment as required. Give due regard to the requirements and impact of local legislation as it applies to retail premises. Some locations have specific rules and regulations when it comes to renovation, relocation, and refurbishment.
  9. Rental trends for similar properties will always be of interest and relevance. It is common in Retail Property to have both net and gross rentals. It is important that the levels of rental income in comparable properties are similar to yours. You do not want a standalone as the best retail property with the highest occupancy costs in the region. That is a recipe for a vacancy escalation. Stay within the averages when it comes to occupancy costs, rentals, and outgoings.
  10. Stay on top of the trends in the local area that the property serves. Understand the demographics of your shopper and any changes that could be occurring therein. Understand any changes in the transport, freeways and highways, and economic sentiment in the region. As the region changes, then the property should also change to suit.

So the tracking of financial performance in a Retail Property involves a number of key issues and factors. When you use sound business practices to identify trends, you help your property to perform more effectively for the landlord. Good decisions can be made, and the business plan for the property becomes more achievable.

How to Transition to a Bodybuilding Lifestyle

Many of us spend time looking in the mirror, wishing for this or that, but the bottom line is that we as humans strive for improvement. Think about how great it feels to accomplish something big and see yourself rewarded for it. Looking at the mirror thinking about how you can improve your physique can be related. Improving your physique is a lot like improving other areas of your life. You’ll feel very accomplished when seeing results, and in turn, motivating yourself to strive to get better. Many of us want the end result, but in order to get that end results, you have to work for it. You won’t get a bachelor’s, or masters, or PhD by wishing you had one. These are all separate goals or achievements in the education process, just like you may have certain steps or goals for your physique accomplishment. The big problem here is transitioning into a healthy lifestyle or a bodybuilding lifestyle. This article will provide you with a step-by-step process on how you can transition from your current lifestyle, into a bodybuilding lifestyle or at least a lifestyle revolved around fitness and improving your physique.

Step 1: Desire the change

The first thing you need to do is to WANT the change in lifestyle. If you aren’t committed towards this lifestyle then it will eat you up. You have to want this. Some people are in unfortunate situations where they NEED it. Let’s hope you aren’t at that point because if you need it, but don’t want the change, that can be a serious problem. If you are serious about the lifestyle and desire the change, then you’ll be a lot more motivated. Motivation is key because increased drive can spell more desired results!

Step 2: Seek Support

No matter how much you think you know, there is always more to be learned. Bodybuilders at all stages of the game still always seek support from other people and it’s this support that can really help their physique grow. Thinking you know everything can lead you down the wrong path. Despite my experience as a bodybuilder, I’m always looking for more information or taking advice from competitors and coaches. Information can be a key to success.

Step 3: Be consistent

We want results that will last, not temporary results. Being consistent will help you establish results that will stick with you for the rest of your life. Continuing to pursue bodybuilding or a healthy lifestyle will give you just that, a healthy lifestyle. One of the biggest ways to achieve your best physique possible is by constantly putting in the work day in and day out.

Home Furniture – Where to Find the Best Bargains

Buying new furniture can be a very expensive task. As with many things in life, you get what you pay for. Cheap, mass produced furniture generally looks exactly that – cheap. Instead of blowing your budget on a brand new living room set, it’s worth considering mixing up your purchases.

Had you considered purchasing a few classic pieces, and then mixing things up with some really nice second hand pieces? It makes sense that your bed and couches will be the most expensive. After all, you will use them the most. Aside from those main items though, here are some tips to help you find some affordable yet decent furniture.

eBay – You will need to invest a lot of time to find exactly what you want, but eBay remains to this day one of the best places to find great second hand furniture. Just be sure to check the Seller’s rating and feedback if you are new to online auctions and are feeling a little nervous about the transaction.

Local shops – Local junk shops can turn into absolute goldmines for second hand furniture. In many cases, the items they hoard will never be found in a brochure or advertised on the internet. Whenever you are away on holidays, make sure you visit some new ones – you never know what you might find. This is also a great opportunity to haggle until it hurts in order to get the lowest prices.

Antiques Markets – These markets are a great opportunity to talk directly to the carpenter or craftsman who is selling their unique wares. This is especially helpful if you want something custom made or a slight alteration. Again, you are in a good position to haggle for a bargain here.

Leave the Big City – Prices are always inflated in the city. If you live somewhere like New York or London, take a road trip and visit the local shops in another smaller town outside the city limits.

How to Get Your Travel Plans in Order

There are some people that begin planning a trip months in advance. They have so much to do and are strategic in their planning right down to the lists of things to do one month before, one week before, the night before. I envy those people because I am so not like that. Organization is not my strong suit so for me, I have to do the research on how to do that. Well, let me tell you what I learned because recently, I planned a big trip with the family to go on a cruise and I didn’t want to do it but thought, this would be the perfect opportunity to show myself that it really works. Below is a list much like the one I followed for our successful trip to the Bahamas. Once the trip was set through the cruise line, all that was left was me emailing everyone a list of things for them to do.

1. For travelling abroad, always check for the currency exchange in advance so you know how much to base your budget on.

2. Make an itinerary of your trip. Include all the phone numbers to any hotels or family members if you plan on staying with family.

3. Arrange for a neighbor or friend to collect your mail or newspapers while you’re gone

4. Be sure to have someone to take care of your pets while you’re away or have someone stay at your home with them so they don’t get lonely.

5. On the day you leave, double check that you have your passport, your tickets, your money, your driver’s license and a copy of your itinerary.

6. Unplug your appliances and be sure all windows and doors are locked and secured.

7. Adjust your thermostat and be sure that the stove/oven is turned off.

8. Leave a light on in the house or set a timer for them to come on at a certain time each night.

9. Have a neighbor watch your house and even have him park his car in your driveway to make it look like someone is staying there.

10. On the actual travel day, wear something comfortable and cool. Take an extra sweater or jacket just in case.

11. If flying to your destination, be sure to arrive at the airport 2 hours prior to your flight to ensure that you are all checked in and ready to go. You will have to have your driver’s license when you check in.