Tenant Mix

A property owner leases space to different operators, and the combination affects why people visit, how long they stay and whether tenants complement one another. Start with the catchment: who lives, works or travels nearby, and what needs are not well served, bearing in mind that the answer can change by time of day.

Map current categories, since food, fashion, health, services, leisure and convenience may occupy different shares of space, and a category label alone does not reveal quality or demand. Look at the physical layout, because an attractive tenant hidden in a hard-to-reach corner may not produce the same visits as one near an entrance.

Consider anchors: a supermarket, cinema or major employer may bring recurring traffic, but dependence on one occupier also creates vacancy risk. Check complementary trips, since a gym and healthy-food operator may serve similar visitors at different times, but test actual customer behaviour rather than assuming a pairing works.

Avoid too much duplication, because several nearly identical shops may compete for the same demand, although some competition can help customers compare and draw visits. Look beyond rent per square metre, as a tenant with lower direct rent may support the centre's wider sales or fill a service gap, and check occupancy and vacancy, since a mix cannot be improved simply by writing an ideal plan if suitable space and operators are not available.

Examine leases too, because use restrictions, exclusive rights and renewal dates may limit what can be placed in a unit, and local law matters. Think about space needs: a restaurant may need extraction, seating, waste handling and late access, and a clinic may need different approvals.

Test operating hours, since a daytime office district may need evening uses to keep the place active, though residents and neighbours can have concerns. Check accessibility, because wayfinding, parking, public transport and inclusive design affect whether the mix can be used by its intended visitors.

Measure category area share: if dining occupies 12,000 square metres of 60,000 lettable area, its share is 20%, which is a description, not an optimal target. Measure performance too, since visits, dwell time, tenant sales where available, vacancy and lease renewals can show whether the mix works, but beware of causality, because if visits rise after a new tenant arrives, marketing, seasonality or nearby development might also contribute.

Include essential services, as a district serving residents may benefit from groceries, childcare, health or daily needs rather than only destination retail, and check tenant strength, since an exciting category is not enough if the operator lacks funding or cannot sustain its lease. Plan for flexibility, because consumer preferences change and a fixed tenant roster can become dated, so short-term uses or adaptable units may help, and avoid a uniform template, since a tourist location, suburban centre and office tower need different mixes.

Talk with occupiers, who can identify customer requests and operational gaps though their interests may not represent everyone, and consider community effects such as noise, traffic and displaced local businesses, since a commercially attractive mix should still fit planning rules and community needs. ICSC's guide recommends observing demand, identifying opportunity sites and targeting categories based on local evidence, and its marketplace exercise shows that consumer preferences can inform a mix but need to be tested in context, so for an owner tenant mix is a continuing leasing and place-management decision that should solve a real customer need while sustaining the property and its occupiers.