If you are planning to build a shopping mall then follow the necessary steps:
- Location, location, location is everything!
- Ensure that the land on the main road is easily accessible
- Not far from the nearby city
- Has ample “self” parking facility
- Does not cause traffic congestion
Is your market ready for the mall? The building cost and keeping the cost of a mall is higher than a normal shopping system.
So this means, you have to charge higher rent from renters, and therefore tenant will charge more margin from customers. So is the market ready to pay more for the “mall” shopping expertise? So take time, interview tenants and landlords at that place, and know the pulse of the market
3. Customer Segment:
Who should be your visitors? Nobody likes something that is made for everyone. People have different tastes and preferences, and these people can be classified as high income/middle income / low income, educated class / professional class / uneducated class, teenagers/youth / mature, etc. If you target a specific class, you can. With a tenancy mix that answers the need for that specific class, you can bring in features, themes, and features that appeal to them.
4. Some different factors:
What is a USP or a unique selling proposition? Why should tenants or shopkeepers come for a tour of the property when it is similar to other commercial complexes? A solid “difference” in the form of a theme, special features, features will help you like your customer
5. Case Study:
Learn from those who started before you. Visit the successful and unsuccessful malls and study what works and what doesn’t. You can avoid costly mistakes made by them and mimic the good things they have done or bring a new idea!
Visit other malls are not enough. You have to know the technical aspects of planning flights, tenancy mix, industry best practices, etc. For this, you have to read related books, online courses, etc.
7. Finalize your idea of the mall:
Determine what subject it will be, how many square feet of area you plan to build and sell / rent, general amenities, and plans to be provided.
8. Branding your mall:
The investment required to develop the mall is not limited to construction costs. It is only the major component, but there are many other important components along with branding, marketing, and sales expenses. You can decide how you will do it, identify the cost of doing it and set it as the budget for the same
9. Operating and human resource expenditure:
Unlike shopping complexes or general commercial buildings, a mall must be managed 24/7. It should have a promotion team, administration team, safety, hygiene, and maintenance team. You have to calculate how many employees are required, how much you should pay them, how you should treat them when you should recruit them, etc. It all goes into your operating budget.
10. IT and Technology Planning:
Is your mall going to be high tech? Is the administration going to be fully computerized? Will the mall use technology for security monitoring? Will there be more technical use? Get the cost and add these to the respective budget.
Do you have money to invest? Or do you need investors? If yes, how much should they invest? What return will they expect on the investment? Would the period also be ideal for them? How do you attract investors? What equipment is needed to attract them? How do you manage investors so that I can get control of the business? How do you manage investors when there is a dispute?
12 Financial Planning:
Once all the budgets are ready, you should do financial feasibility analysis in different scenarios. This will be based on the revenue and cost you create. The estimate will show the estimated balance sheet (your assets and liabilities, in the future), profit and loss statement, cash flow statement, and ratio (return period, ROI, and break-even points) in each scenario.
13. Simulate Business Model:
If the financial projection (ROI, back period, and break-even) is not meeting your expectations, then you will have to make changes to each of your plans (by reducing your budget) until your financial plans become more acceptable. But this should not be unrealistic.
14. Selection of Architect:
The architect should only come to this level. At this stage, the total capital is finalized, the budget set aside for mall construction is finalized, and the specific theme, facilities, facilities, and necessary facilities are all well documented.
This requirement should be given to the architect. The architect’s duty should be to build a pretty scenic mall, which complies with the legal and security requirements within the budget and meets the client’s entire needs. Currently, since most customers do not know how their malls should be, authorize the architect to complete all of the above steps.
And since architects are not experts in mall business models, they were designed based on their limited knowledge. Also, they allocate more than the necessary capital for construction, which will seriously affect the financial viability of the mall.
15. Start branding:
Start branding as soon as construction begins. Branding is the process of creating the desired effect on people’s minds. The more people like your branding, the more they will be eager to shop at your mall or your mall
16. Hunting for the right tenants:
Unlike shopping complexes, the tenant mix is important in shopping malls. The more brands, the better. And it is not sensible to sit idle and wait for them to come. Instead, hunt for ideal brands to install in your mall. Market them long ago. So that they have enough time to plan the allocation of funds and resources.
17. Opening with a bang!
A mall is usually the pride of a city. So the whole city should know about it. Also, when hundreds of people have swept away, the mall should have all its shops open for business. A mall that is not fully functional is something shoppers don’t like to see.
18. Professional management:
Unlike a shopping complex, a mall has to be managed which is also professional. There should be a regular schedule to bring in crowds, security should be good, malls should always be clean and tidy, maintenance should always be ahead of time.
Creating a shopping mall is an interesting journey, and so are the rewards. The mall does not just come with a high rental income. It comes with high ground approval.
Rent shopping malls in Canada
According to industry experts, retailers arriving in Canada face high rents, tight markets, and high real estate taxes. As Canada has fewer malls, a stronger economy, and more demand from American businessmen, who see Canada as a desirable step in their business expansion plans.
High real estate costs are among the reasons cited by retailers in Canada charging higher prices, increasing resentment with consumers who believe Canadian prices should be on par with the US, now Canadians The dollar trades at or above the US dollar.
Retailers also blame higher duties, transportation, and labor costs.
Recently popular fashion retailer J. Prices rose again when the crew reopened their first Canadian store, about 15 percent from their American stores.
As more US retailers enter the Canadian market, consumers are seeing how closely their prices are south of the border. Are malls high-rent in Canada?
Shopping Center charges an average of $ 200 per square foot per year, plus $ 90 per square foot in real estate taxes and operating costs of $ 290 per square foot per year.
There are fewer types of shopping centers in Canada, particularly at the lower end, the U.S. The centers have more secondary and tertiary centers. Our tendency is bigger, more powerful, and more productive. Also, Canada has fewer outlet malls and more power centers. Both feature stores are connected to a common parking lot, but the outlet malls are located outside the city center and charge low rent.