QUOTE(CMW123 @ Sep 19 2013, 09:17 PM)
Believed a strong mall management company would have got their tenants committed way before the mall opening...
It's like selling properties, for the "pioneer" tenants, they offer the lowest rental. Then use the names of the pioneers to attract the next batch of operators and slowly up the rental. Like properties buyer, the more people booked, the more tempted you also want to book...
If operator see their competitor brands sign up tenancy, they also tempted to sign up
If SA tell you which celebrity book the project, you also tempted...
The power of sales strategies...
true... for a new mall, "pioneer" tenant need to have gut even rental rate is low.
fyi, setia city mall as a new mall their rental rate for "pioneer" tenants monthly rental already RM18 to RM20 psf (include service & maintenance charges).
depend location. more prime more higher rental. if your shop size roughly around 1000sf+....monthly rental already almost RM20K.
as a new mall you need to imagine the traffic flow....choose the lot carefully and wisely.
if you choice the wrong location with low traffic flow ...bye bye...or high traffic flow but not your terget market..... also bye bye..
those prime lots already reserved for international brands also for mall image purpose.
for new mall the tenant and their competitor usually you see me i c you....c who go in there and die first.

if the mall turn out good then "pioneer" tenant happy lor.
if turn out just okok or bad....those second comer will laugh with even low rental + they can observe the real live traffic flow and choose the nice/suitable location... those pioneer might already suffer more than a year...almost reach K.O. stage.
usually a mall need to take 1 to 2 years to reach the mature stage after the mall open.
pavilion KL is the real life example.... from the start they are actually suffering.. and force to rent out the prime area to niichi as a "pioneer" tenant... after pavilion kl get famous with high traffic gain...they can't wait to kick niichi out of the prime area and replace with muji... this is the fate of pioneer tenant...not all end up like that lar....
This post has been edited by HELLO HELLO: Sep 20 2013, 12:34 AM